Question 3 Expected sales for the upcoming five months (March - July, 2023) in "GBB" company is as follows. Months March Amount RO 40,000 April 44,000 May 50,000 June 56,000 Sales policy is to receive 35% of the sales in cash at the same month of sale, and the remaining 65% in the next month. Purchases cost is expected to be 60% of each month sales and is paid completely a month after the purchases. Other cash incomes Rent to be received RO 1000 in June and RO 3000 in August Loan is expected to be borrowed in June RO 5,000. July 60,000 Interest is to be received RO 2,500 on June and RO 1,500 in August Other expenses: Wages 30 % of each month sale is paid in the same month. Rent RO 7,000 paid on April and RO 5,000 on July. Taxes RO 4,000 to be paid in two equal parts in June and September. Other Miscellaneous RO 1,500 is paid monthly Opening balance for May is RO 6,000. Prepare the Cash Budget for the second quarter of 2023 (May - July).

Question 3 Expected sales for the upcoming five months (March - July, 2023) in "GBB" company is as follows. Months March Amount RO 40,000 April 44,000 May 50,000 June 56,000 Sales policy is to receive 35% of the sales in cash at the same month of sale, and the remaining 65% in the next month. Purchases cost is expected to be 60% of each month sales and is paid completely a month after the purchases. Other cash incomes Rent to be received RO 1000 in June and RO 3000 in August Loan is expected to be borrowed in June RO 5,000. July 60,000 Interest is to be received RO 2,500 on June and RO 1,500 in August Other expenses: Wages 30 % of each month sale is paid in the same month. Rent RO 7,000 paid on April and RO 5,000 on July. Taxes RO 4,000 to be paid in two equal parts in June and September. Other Miscellaneous RO 1,500 is paid monthly Opening balance for May is RO 6,000. Prepare the Cash Budget for the second quarter of 2023 (May - July).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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