9. Chadmark Cor. budgeted monthly sales are P3,000. Per experience, 40% of its customers pay in the first month and take the 2 % discount. The remaining 60% pay in the month following the sale and don't receive a discount. Bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at P1,500. Other payments for wages, rent, and taxes are constant at P700 per month. Construct a single month's cash budget with the information given. What is the average cash gain or (loss) during a typical month? C. P776 D. P800 A. P728 E. P2,600 B. P740

9. Chadmark Cor. budgeted monthly sales are P3,000. Per experience, 40% of its customers pay in the first month and take the 2 % discount. The remaining 60% pay in the month following the sale and don't receive a discount. Bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at P1,500. Other payments for wages, rent, and taxes are constant at P700 per month. Construct a single month's cash budget with the information given. What is the average cash gain or (loss) during a typical month? C. P776 D. P800 A. P728 E. P2,600 B. P740

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
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