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the preparation of monthly cash budget for the last

the preparation of monthly cash budget for the last

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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Al-Nasser Company maintains banking facilities in the form of an overdraft account with Al-Rasheed Bank. It has prepared sales forecasts, all of which are due for the years 1990 and 1991, as follows: Amtin d ath and yeer 1500 May1990 1500 June July August 5500 4000 6100 September 3100 October 3200 November 7600 December 1500 Januery1991 A study prepared on the collection of receivables indicates as follows: 1_7.5% of sales are collected during the first month from the date of sale, Le. in the same month. 2 80% of sales are collected during the first month from the date of sale 3 12% of sales are collected within two months from the date of sale. 4 The remainder of the sales shall be collected within three months from the date of sale The company used to pay the raw materials and labor wages during the month following the river of fulfiliment of it. These purchases are estimated as follow At n enth and yeer 750 May1990 750 June 1700 July 1970 August 1700 September 2650 October 1360 November 7700 December In addition, there are cash payments as follows: Administrative and public expenses for 225,000 dinars per month. Long-term rent payments 75,000 dinars per month. 3-Diversified expenses 22500 per month. Income tax payments 55,500 dinars deserves to pay with this amount in July and September and the first. Payments on the account to buy laboratories for 160000 dinars in September and second. Annual expenses amounted to 300,000 dinars annually. Cash balance in 1990/7/1 is 1,100,000 dinars. In the time limit for the required cash equity required during the budget period 75,000 required: the preparation of monthly cash budget for the last six months from 1990
Transcribed Image Text:Al-Nasser Company maintains banking facilities in the form of an overdraft account with Al-Rasheed Bank. It has prepared sales forecasts, all of which are due for the years 1990 and 1991, as follows: Amtin d ath and yeer 1500 May1990 1500 June July August 5500 4000 6100 September 3100 October 3200 November 7600 December 1500 Januery1991 A study prepared on the collection of receivables indicates as follows: 1_7.5% of sales are collected during the first month from the date of sale, Le. in the same month. 2 80% of sales are collected during the first month from the date of sale 3 12% of sales are collected within two months from the date of sale. 4 The remainder of the sales shall be collected within three months from the date of sale The company used to pay the raw materials and labor wages during the month following the river of fulfiliment of it. These purchases are estimated as follow At n enth and yeer 750 May1990 750 June 1700 July 1970 August 1700 September 2650 October 1360 November 7700 December In addition, there are cash payments as follows: Administrative and public expenses for 225,000 dinars per month. Long-term rent payments 75,000 dinars per month. 3-Diversified expenses 22500 per month. Income tax payments 55,500 dinars deserves to pay with this amount in July and September and the first. Payments on the account to buy laboratories for 160000 dinars in September and second. Annual expenses amounted to 300,000 dinars annually. Cash balance in 1990/7/1 is 1,100,000 dinars. In the time limit for the required cash equity required during the budget period 75,000 required: the preparation of monthly cash budget for the last six months from 1990
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