Imagine you are the finance manager of Al Mohsin Company. The company management feels that the cash management of the company should be made more effective. The following information from the company's records is available to you: Miscellaneous Wages 7,000 Month Sales Purchase еxpenses 1,000 February 40,000 20,000 March 55,000 14,000 8,000 3,000 Аpril 60,000 28,000 9,000 2,000 Мay 74,000 30,000 9,000 2,000 June 90,000 32,000 8,800 3,500 Additional Information 1. Al Mohsin LLC expects to have RO 8,000 cash balance at the beginning of April. 2. Period of credit allowed by suppliers - 2 months 3. 40% of the total sale is for cash. Half of the credit sale is collected in the next month of sale and the remaining half in the following month after that. 4. Delay in payment of wages 1/4 month 5. Delay in payment of expenses 1/2 month 6. Income tax to be paid in the month of June RO 1,500. You are required to : a. Prepare an estimate of cash position for three months from April to June.

Imagine you are the finance manager of Al Mohsin Company. The company management feels that the cash management of the company should be made more effective. The following information from the company's records is available to you: Miscellaneous Wages 7,000 Month Sales Purchase еxpenses 1,000 February 40,000 20,000 March 55,000 14,000 8,000 3,000 Аpril 60,000 28,000 9,000 2,000 Мay 74,000 30,000 9,000 2,000 June 90,000 32,000 8,800 3,500 Additional Information 1. Al Mohsin LLC expects to have RO 8,000 cash balance at the beginning of April. 2. Period of credit allowed by suppliers - 2 months 3. 40% of the total sale is for cash. Half of the credit sale is collected in the next month of sale and the remaining half in the following month after that. 4. Delay in payment of wages 1/4 month 5. Delay in payment of expenses 1/2 month 6. Income tax to be paid in the month of June RO 1,500. You are required to : a. Prepare an estimate of cash position for three months from April to June.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 3TP: Consider the dilemma you might someday face if you are the chief financial officer of a company that...

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