Mr. Logan is a financial manager of Sweethermanas Berhad. He is responsible for preparing the cash budget of the company for the second quarter of 2020. The company sales and forecasted sales are as follows: Sales (RM) 68,000 70,000 80,000 85,000 90,000 108,000 Month February March April May June July The customer pays cash for 20 percent of sales in the month of sales, and the balance is credit sales. Forty (40) percent will be collected a month after sales, and another 40 percent will be collected two (2) months after-sales. Purchases of raw materials 60 percent of sales and are made one month in advance of the sale. The supplier is paid 100 percent in the month of the following purchase. The monthly fixed expense is RM10,800.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Calculate the net cash flow for June 2020

Answer the following questions based on the given data.
Mr. Logan is a financial manager of Sweethermanas Berhad. He is responsible for preparing the cash budget of the company for the second quarter of 2020. The
company sales and forecasted sales are as follows:
Sales (RM)
68,000
70,000
80,000
85,000
90,000
108,000
Month
February
March
April
May
June
July
The customer pays cash for 20 percent of sales in the month of sales, and the balance is credit sales. Forty (40) percent will be collected a month after sales, and
another 40 percent will be collected two (2) months after-sales. Purchases of raw materials 60 percent of sales and are made one month in advance of the sale. The
supplier is paid 100 percent in the month of the following purchase. The monthly fixed expense is RM10,800.
Transcribed Image Text:Answer the following questions based on the given data. Mr. Logan is a financial manager of Sweethermanas Berhad. He is responsible for preparing the cash budget of the company for the second quarter of 2020. The company sales and forecasted sales are as follows: Sales (RM) 68,000 70,000 80,000 85,000 90,000 108,000 Month February March April May June July The customer pays cash for 20 percent of sales in the month of sales, and the balance is credit sales. Forty (40) percent will be collected a month after sales, and another 40 percent will be collected two (2) months after-sales. Purchases of raw materials 60 percent of sales and are made one month in advance of the sale. The supplier is paid 100 percent in the month of the following purchase. The monthly fixed expense is RM10,800.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education