JJM Corporation has been engaged in the process of forecasting its financing needs over the next quarter and has made the following forecasts of planned cash receipts and disbursements: The monthly sales for the year of 2015: April May June July 牌 RM 600,000 500,000 520,000 550,000 August September October RM 530,000 520,000 560,000 580,000 November ) The firm's sales of 40% is collected in the month of sale and the remaining balance will be collected equally in the following two months after sales. i) The raw materials are 80% of sales purchased two (2) months before the sales month. The supplier is paid one month after the purchases on the cash navment basis

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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JJM Corporation has been engaged in the process of forecasting its financing needs over
the next quarter and has made the following forecasts of planned cash receipts and
disbursements:
The monthly sales for the year of 2015:
April
May
June
July
RM
600,000
500,000
520,000
August
September
October
November
RM
530,000
520,000
560,000
580,000
550,000
i) The firm's sales of 40% is collected in the month of sale and the remaining
balance will be collected equally in the following two months after sales.
The raw materials are 80% of sales purchased two (2) months before the
sales month. The supplier is paid one month after the purchases on the cash
payment basis.
i)
Transcribed Image Text:JJM Corporation has been engaged in the process of forecasting its financing needs over the next quarter and has made the following forecasts of planned cash receipts and disbursements: The monthly sales for the year of 2015: April May June July RM 600,000 500,000 520,000 August September October November RM 530,000 520,000 560,000 580,000 550,000 i) The firm's sales of 40% is collected in the month of sale and the remaining balance will be collected equally in the following two months after sales. The raw materials are 80% of sales purchased two (2) months before the sales month. The supplier is paid one month after the purchases on the cash payment basis. i)
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