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total cash inflow

total cash inflow

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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budgeted sales for the first five months of the budget year 200B: Oyco Company's budget committee came up with the company's January February March P76,000 52,000 56,000 64,000 68,000 April May Ninety percent of total sales is on credit. Historically, Oyco Company has had no significant bad debt experience with its customers, and the receivables have been collected in the following manner: 40% in the month of sale 30% in the month following the sale 25% in the second month following the sale 5% in the third month following the sale However, due to the deteriorating economic conditions brought about by the continuous increases in oil prices and other external factors, the budget committee decided that the cash forecast should include a provision for bad debts of 2% on credit sales beginning with the sales for the month of April." Because of this change in collection policy, the total cash inflow from April sales will be а. Р62,720. 2s P56,448 with CamScannef: P64,000. с. Р62,848.
Transcribed Image Text:budgeted sales for the first five months of the budget year 200B: Oyco Company's budget committee came up with the company's January February March P76,000 52,000 56,000 64,000 68,000 April May Ninety percent of total sales is on credit. Historically, Oyco Company has had no significant bad debt experience with its customers, and the receivables have been collected in the following manner: 40% in the month of sale 30% in the month following the sale 25% in the second month following the sale 5% in the third month following the sale However, due to the deteriorating economic conditions brought about by the continuous increases in oil prices and other external factors, the budget committee decided that the cash forecast should include a provision for bad debts of 2% on credit sales beginning with the sales for the month of April." Because of this change in collection policy, the total cash inflow from April sales will be а. Р62,720. 2s P56,448 with CamScannef: P64,000. с. Р62,848.
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