From the following data, Forecast the cash position at the endOctober, November and December 2020MonthSales(RO)Purchases (RO)SalariesMiscellancotAugust60,00042,0005,0003,500September65,00050,0006,0004,000October40,00052,0004,0003,000November58,00053,0005,0006,000December44,00040,0004,0003,000Additional Information1. Sales: 10% realized in the month of sales, balance realised equally in twosubsequent months.2. Purchases are paid in the month following the month of supply.3. 10% of the wages are paid in the following month.4. Miscellaneous expenses paid a month in arrears.5. Rent of RO 500 per month paid quarterly in advance due in October.6. First Instalment of Income Tax of RO 15,000 due on or before 15 December.7. Income from Investment RO 3,000 received quarterly in October 2020 and Janu:2021.8. Cash in hand RO 3,000 on 1" October 2020.

Cash budget is forecast that estimates the future cash outlays and receipts.

From the following data, Forecast the cash position at the end October, November and December 2020 Sales(RO) Purchases (RO) Salaries Miscellancot Month August 60,000 42,000 5,000 3,500 September 65,000 50,000 6,000 4,000 October 40,000 52,000 4,000 3,000 November 58,000 53,000 5,000 6,000 December 44,000 40,000 4,000 3,000 Additional Information 1. Sales: 10% realized in the month of sales, balance realsed equally in two subsequent months. 2. Purchases are pald in the month following the month of supply. 3. 10% of the wages are paid in the following month. 4. Miscellaneous expenses paid a month in arrears. 5. Rent of RO 500 per month paid quarterly in advance due in October. 6. First Instalment of Income Tax of RO 15,000 due on or before 15 December. 7. Income from Investment RO 3,000 received quarterly in October 2020 and Janu: 2021. 8. Cash in hand RO 3,000 on 1" October 2020.

From the following data, Forecast the cash position at the end October, November and December 2020 Sales(RO) Purchases (RO) Salaries Miscellancot Month August 60,000 42,000 5,000 3,500 September 65,000 50,000 6,000 4,000 October 40,000 52,000 4,000 3,000 November 58,000 53,000 5,000 6,000 December 44,000 40,000 4,000 3,000 Additional Information 1. Sales: 10% realized in the month of sales, balance realsed equally in two subsequent months. 2. Purchases are pald in the month following the month of supply. 3. 10% of the wages are paid in the following month. 4. Miscellaneous expenses paid a month in arrears. 5. Rent of RO 500 per month paid quarterly in advance due in October. 6. First Instalment of Income Tax of RO 15,000 due on or before 15 December. 7. Income from Investment RO 3,000 received quarterly in October 2020 and Janu: 2021. 8. Cash in hand RO 3,000 on 1" October 2020.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 8P: LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and...

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