In preparing a cash budget, what use is made of the number: cost of goods sold as a percentage of sales? Used to convert cost of goods sold numbers into inventory cost numbers to forecast cash collected from customers Used to convert loan borrowing amounts into loan repayment amounts to establish loan schedules Used to convert sales numbers into inventory cost numbers to forecast cash collected from customers O Used to convert sales numbers into inventory cost numbers to forecast cash paid for inventory purchases

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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In preparing a cash budget, what use is made of the number: cost of goods sold as a percentage of sales?
Used to convert cost of goods sold numbers into inventory cost numbers to forecast cash collected from customers
Used to convert loan borrowing amounts into loan repayment amounts to establish loan schedules
Used to convert sales numbers into inventory cost numbers to forecast cash collected from customers
O Used to convert sales numbers into inventory cost numbers to forecast cash paid for inventory purchases
Transcribed Image Text:7 In preparing a cash budget, what use is made of the number: cost of goods sold as a percentage of sales? Used to convert cost of goods sold numbers into inventory cost numbers to forecast cash collected from customers Used to convert loan borrowing amounts into loan repayment amounts to establish loan schedules Used to convert sales numbers into inventory cost numbers to forecast cash collected from customers O Used to convert sales numbers into inventory cost numbers to forecast cash paid for inventory purchases
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Cash budget is an important budget in finance.

 

It shows the different sources of cash receipts (inflows) and different uses of cash (cash outflows).

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