Po9 Xi sells fruit and vegetables from hismarket stall for cash. His budgeted salesfor February, March and April are$45,000, $50,000 and $55,000respectively. His suppliers allow him onemonth's credit in which to pay for thefruit and vegetables that he sells. Hispurchases cost is budgeted to be 80%of the sales value of his produce. Xirents his market stall at a cost of $1,000per month, payable on the first day ofeach month. Electricity costs for hismarket stall amount to $200 per monthand he pays for these quarterly inMarch, June, September and December.Xi withdraws $2,000 a month from hisbusiness for his own personal expenses.What is Xi's net cash inflow for March? 1.Prepare a cash flow statement 2.Calculate the cash inflow 3. Explain yourcalculations 4. Provide your analysis

Cash flow budget is an estimated statement of all cash receipts and all cash payments that are…

Answered: What is Xi's net cash inflow for March?…

What is Xi's net cash inflow for March? 1. Prepare a cash flow statement 2. Calculate the cash inflow 3. Explain your calculations 4. Provide your analysis

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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Fred Flingstone operates a French Fries stand at the local flee market that operates for 8 weekends through the summer. The market vendor fee is $50 per weekend, his vendor insurance is $376 for the summer and he has committed to paying a helper $150 per weekend. His variable costs are $1.58 per French Fries (This includes the cost of napkins, ketchup and salt). He plans to sell the fries for $3.50 each and he knows from experience that he can make a maximum of 200 fries each weekend. a) How many fries does he have to sell per week to break even? b) On one weekend he gets sick and cannot get to the market? What is his net loss for that weekend? c) Another french fries vendor at the market sells fries for $3.10 each. How many fries would Fred have to sell in summer at this price to break even assuming none of his costs change? d) How much would he have to change the variable costs (assuming original fixed costs) to maintain his original break even point if he sold fries at $3.00?
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