The following sales and purchases are expected over the Four-month period from December to March Purchases Sales December OMR 30000 OMR 26000 January OMR 25000 OMR 30000 February OMR 24000 OMR 24000 March OMR 26000 OMR 28000 Additional Information: 1. Wages are paid each month of OMR 2000, which are paid in month that they are incurred 2. 30% of the Sales are on credit - and we allow one-month credit period - and 70% of the sales for immediate settlement 3. 40% of the Purchases are on credit - and 1 month credit period - and 60% of the purchases are for immediate settlement 4. The balance of cash as at 1 January was OMR 9000 If the company is preparing a budget from January to March, what will be the Closing balance of cash on March ? Select one: a. OMR 7800 b. OMR 7200 c. OMR 5800
The following sales and purchases are expected over the Four-month period from December to March Purchases Sales December OMR 30000 OMR 26000 January OMR 25000 OMR 30000 February OMR 24000 OMR 24000 March OMR 26000 OMR 28000 Additional Information: 1. Wages are paid each month of OMR 2000, which are paid in month that they are incurred 2. 30% of the Sales are on credit - and we allow one-month credit period - and 70% of the sales for immediate settlement 3. 40% of the Purchases are on credit - and 1 month credit period - and 60% of the purchases are for immediate settlement 4. The balance of cash as at 1 January was OMR 9000 If the company is preparing a budget from January to March, what will be the Closing balance of cash on March ? Select one: a. OMR 7800 b. OMR 7200 c. OMR 5800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following sales and purchases are expected over the Four-month period from December to March
|
Purchases |
Sales |
|
|
December |
OMR 30000 |
OMR 26000 |
|
January |
OMR 25000 |
OMR 30000 |
|
February |
OMR 24000 |
OMR 24000 |
|
March |
OMR 26000 |
OMR 28000 |
Additional Information:
1. Wages are paid each month of OMR 2000, which are paid in month that they are incurred
2. 30% of the Sales are on credit - and we allow one-month credit period - and 70% of the sales for immediate settlement
3. 40% of the Purchases are on credit - and 1 month credit period - and 60% of the purchases are for immediate settlement
4. The balance of cash as at 1 January was OMR 9000
If the company is preparing a budget from January to March, what will be the Closing balance of cash on March ?
Select one:
a. OMR 7800
b. OMR 7200
c. OMR 5800
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