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Question: The electronics company plans to obtain banking facilities in the form of an overdraft account with Al-Rasheed Bank. The sales forecasts (all of which are forward-looking) have been prepared for the years 1990 and 1991 and are as follows: menth and ye Amunt in thousand Mays 1990 150 June 150 July 3000 August 4500 September 6000 October 3000 November 3000 December 750 January 1500 A study prepared on the collection of accounts receivable indicates as follows: 5% of sales are collected during the first month from the date of sale, ie in the same month. 2- 80% of sales are collected during the second month from the date of sale. 3 15% of sales are collected within two months from the date of sale. The company used to pay the basic materials and labor wages during the month following the month I achieved them, and it estimates the value of these purchases in the following manner. Purchases menth d year Amount in theusende Mays 1990 75 June 75 July 1060 August 7360 September 2560 October 1950 November 1350 December 750 In addition, there are cash payments as follows: 1 Administrative and general expenses of 22,500 dinars per month 2-Long-term rent payments of 7,500 dinars per month. 3-Miscellaneous expenses 2250 dinars per month. 4-Income tax payments of 52,500 dinars are due to be paid with this amount in both the months of September and December 5 payments on account for the purchase of laboratories in the amount of 150,000 dinars in October and the second. 6 The annual depreciation expenses amounted to 30,000 dinars annually. 7- The cash balance in 1/7/1990 amounted to 110,000 dinars. 8-The minimum cash balance required to be maintained during the budget period is 75,000 dinars. Required: Prepare the monthly cash budget for the last six months of 1990

Question: The electronics company plans to obtain banking facilities in the form of an overdraft account with Al-Rasheed Bank. The sales forecasts (all of which are forward-looking) have been prepared for the years 1990 and 1991 and are as follows: menth and ye Amunt in thousand Mays 1990 150 June 150 July 3000 August 4500 September 6000 October 3000 November 3000 December 750 January 1500 A study prepared on the collection of accounts receivable indicates as follows: 5% of sales are collected during the first month from the date of sale, ie in the same month. 2- 80% of sales are collected during the second month from the date of sale. 3 15% of sales are collected within two months from the date of sale. The company used to pay the basic materials and labor wages during the month following the month I achieved them, and it estimates the value of these purchases in the following manner. Purchases menth d year Amount in theusende Mays 1990 75 June 75 July 1060 August 7360 September 2560 October 1950 November 1350 December 750 In addition, there are cash payments as follows: 1 Administrative and general expenses of 22,500 dinars per month 2-Long-term rent payments of 7,500 dinars per month. 3-Miscellaneous expenses 2250 dinars per month. 4-Income tax payments of 52,500 dinars are due to be paid with this amount in both the months of September and December 5 payments on account for the purchase of laboratories in the amount of 150,000 dinars in October and the second. 6 The annual depreciation expenses amounted to 30,000 dinars annually. 7- The cash balance in 1/7/1990 amounted to 110,000 dinars. 8-The minimum cash balance required to be maintained during the budget period is 75,000 dinars. Required: Prepare the monthly cash budget for the last six months of 1990

FINANCIAL ACCOUNTING
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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Question: The electronics company plans to obtain banking facilities in the form of an overdraft account with Al-Rasheed Bank. The sales forecasts (all of which are forward-looking) have been prepared for the years 1990 and 1991 and are as follows: Amount month and yer theuand Mays 1990 150 June 150 July 3000 August 4500 September 6000 October 3000 November 3000 December 750 January 1500 A study prepared on the collection of accounts receivable indicates as follows: 5% of sales are collected during the first month from the date of sale, je in the same month. 2-80% of sales are collected during the second month from the date of sale. 3 15% of sales are collected within two months from the date of sale. The company used to pay the basic materials and labor wages during the month following the month I achieved them, and it estimates the value of these purchases in the following manner. Purchases Amount in thousanda Mays 1990 75 June 75 July 1060 August 7360 September 2560 October 1950 November 1350 December 750 In addition, there are cash payments as follows: 1 Administrative and general expenses of 22,500 dinars per month 2-Long-term rent payments of 7,500 dinars per month. 3- Miscellaneous expenses 2250 dinars per month. 4-Income tax payments of 52,500 dinars are due to be paid with this amount in both the months of September and December 5 on account for the chase of laboratories in the amount of 150,000 dinars in October and the second. 6 The annual depreciation expenses amounted to 30,000 dinars annually. 7- The cash balance in 1/7/1990 amounted to 110,000 dinars. 8-The minimum cash balance required to be maintained during the budget period is 75,000 dinars. Required: Prepare the monthly cash budget for the last six months of 1990
Transcribed Image Text:Question: The electronics company plans to obtain banking facilities in the form of an overdraft account with Al-Rasheed Bank. The sales forecasts (all of which are forward-looking) have been prepared for the years 1990 and 1991 and are as follows: Amount month and yer theuand Mays 1990 150 June 150 July 3000 August 4500 September 6000 October 3000 November 3000 December 750 January 1500 A study prepared on the collection of accounts receivable indicates as follows: 5% of sales are collected during the first month from the date of sale, je in the same month. 2-80% of sales are collected during the second month from the date of sale. 3 15% of sales are collected within two months from the date of sale. The company used to pay the basic materials and labor wages during the month following the month I achieved them, and it estimates the value of these purchases in the following manner. Purchases Amount in thousanda Mays 1990 75 June 75 July 1060 August 7360 September 2560 October 1950 November 1350 December 750 In addition, there are cash payments as follows: 1 Administrative and general expenses of 22,500 dinars per month 2-Long-term rent payments of 7,500 dinars per month. 3- Miscellaneous expenses 2250 dinars per month. 4-Income tax payments of 52,500 dinars are due to be paid with this amount in both the months of September and December 5 on account for the chase of laboratories in the amount of 150,000 dinars in October and the second. 6 The annual depreciation expenses amounted to 30,000 dinars annually. 7- The cash balance in 1/7/1990 amounted to 110,000 dinars. 8-The minimum cash balance required to be maintained during the budget period is 75,000 dinars. Required: Prepare the monthly cash budget for the last six months of 1990
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