The following information has been extracted from the financial statements of Greenstar Limited. Statement of Financial Position as at 31 December 2020 ASSETS R Non -Current Assets 2 250 000 Current assets 1 656 000 Inventory 792 000 Accounts Receivable 648 000 Cash 216 000 Sales for 2020 amounted to R3 600 000 and is forecasted to increase to R4 200 000 in 2021. The company uses the percentage of sales to forecast current assets. In 2021 accounts receivable will be projected at an amount of: O A. R648 000 O B. R555 429 O C. R623 000 O D. R756 000
The following information has been extracted from the financial statements of Greenstar Limited. Statement of Financial Position as at 31 December 2020 ASSETS R Non -Current Assets 2 250 000 Current assets 1 656 000 Inventory 792 000 Accounts Receivable 648 000 Cash 216 000 Sales for 2020 amounted to R3 600 000 and is forecasted to increase to R4 200 000 in 2021. The company uses the percentage of sales to forecast current assets. In 2021 accounts receivable will be projected at an amount of: O A. R648 000 O B. R555 429 O C. R623 000 O D. R756 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer both questions
Transcribed Image Text:The following information has been extracted from the financial statements of Greenstar Limited.
Statement of Financial Position as at 31 December 2020
ASSETS
R
Non -Current Assets
2 250 000
Current assets
1 656 000
Inventory
792 000
Accounts Receivable
648 000
Cash
216 000
Sales for 2020 amounted to R3 600 000 and is forecasted to increase to R4 200 000 in 2021. The company uses the
percentage of sales to forecast current assets.
In 2021 accounts receivable will be projected at an amount of:
A. R648 000
O B. R555 429
O C. R623 000
D. R756 000
Transcribed Image Text:The following information has been extracted from the financial statements of Greenstar Limited.
Statement of Financial Position as at 31 December 2020
ASSETS
Non -Current Assets
2 250 000
Current assets
1 656 000
Inventory
792 000
Accounts Receivable
648 000
Cash
216 000
Sales for 2020 amounted to R3 600 000 and is forecasted to increase to R4 200 000 in 2021. The company uses the
percentage of sales to forecast current assets.
In 2021 accounts receivable will be projected at an amount of:
A. R648 000
O B. R555 429
O C. R623 000
O D. R756 000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education