Mary is the junior accountant. She expects the following to be figures for the first three months of trading. Purchases (Credit)Sales (Credit)October600014,000November600016,000December800014,000The hospital borrowed a loan of 25,000 SAR cash to be invested in his business in month 1. It was deposited in the bankThe opening cash in November is SR 5,000.50% of the purchases on credit need to be paid for every month.50% of the purchases are in cash.Sales to be paid one month after.The business pays rent every month for SR 9,000Equipment bought for SR 10,000 in December.Insurance expense SR 1250 every month.Prepare the cash flow forecast for the November and December. (Unit 16 SLO’s 3.1, 3.2 SS 4, 7)Using a Word document; produce a draft template for a proposal letter which could be sent to customers to follow up outstanding payments using an appropriate format and style according to the organization requirement

Cash Budget The purpose of preparing the cash budget to know the cash inflows and outflows which are…

Answered: Mary is the junior accountant. She…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mary is the junior accountant. She expects the following to be figures for the first three months of trading.

The hospital borrowed a loan of 25,000 SAR cash to be invested in his business in month 1. It was deposited in the bank
The opening cash in November is SR 5,000.
50% of the purchases on credit need to be paid for every month.
50% of the purchases are in cash.
Sales to be paid one month after.
The business pays rent every month for SR 9,000
Equipment bought for SR 10,000 in December.
Insurance expense SR 1250 every month.

Prepare the cash flow forecast for the November and December. (Unit 16 SLO’s 3.1, 3.2 SS 4, 7)
Using a Word document; produce a draft template for a proposal letter which could be sent to customers to follow up outstanding payments using an appropriate format and style according to the organization requirement

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