use the attachement to answer the following Cash outflows in March for purchases will be: a) $240b) $220c) $200d) $176 The treasurer of Simmons Corporation, a newly formed software company istrying to ascertain Simmons cash flows for the next three months. Expected salesare:January$200February$220March$300Expected Sales50% of sales are made for cash. Simmons expects to receive 25% in the monthfollowing the sale and 20% in the second month following the sale. The remaining5% are expected to be un-collectible. Gross margin is 20%, and purchases aremade one month prior to sale. Purchases are paid one month after received.

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Description: use the attachement to answer the following Cash outflows in March for purchases will be: a) $240b) $220c) $200d) $176 The treasurer of Simmons Corporation, a newly formed software company istrying to ascertain Simmons cash flows for the next three

Gross margin is very important in the business and gross margins can be obtained by deduction of…

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Accounting

the attachement to answer the following Cash outflows in March for purchases will be: a) $240 b) $220 c) $200 d) $176

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

use the attachement to answer the following

Cash outflows in March for purchases will be:

a) $240

b) $220

c) $200

d) $176

The treasurer of Simmons Corporation, a newly formed software company is
trying to ascertain Simmons cash flows for the next three months. Expected sales
are:
January
$200
February
$220
March
$300
Expected Sales
50% of sales are made for cash. Simmons expects to receive 25% in the month
following the sale and 20% in the second month following the sale. The remaining
5% are expected to be un-collectible. Gross margin is 20%, and purchases are
made one month prior to sale. Purchases are paid one month after received.

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