Monthly cash expenses: Monthly cash expenses are those cash expenses that are estimated from the operating activities section of the statement of the cash flows . These monthly cash expenses are otherwise referred to cash burn. Formula: Monthly cash expenses = Negative cash flow from operations 12 To compute: Ratio of cash to monthly cash expenses.

Question

The balance in Accounts Receivable at the beginning of the period amounted to $2,880. During the period $9,440 of credit sales were made to customers balance in Accounts Receivable amounted to $1,880, and uncollectible accounts expense amounted to $800, then the amount of cash inflow from customers appear in the operating activities section of the cash flow statement would be Multiple Choice $9.640 $9,440 $12.120 Nore of these answers are correct b

Answer 1

Question

Chapter 8, Problem 8.5BPE

(1)

To determine

Monthly cash expenses: Monthly cash expenses are those cash expenses that are estimated from the operating activities section of the statement of the cash flows. These monthly cash expenses are otherwise referred to cash burn.

Formula:

Monthly cash expenses = Negative cash flow from operations 12

To compute: Ratio of cash to monthly cash expenses.

(2)

To determine

To interpret: The results of ratio.

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