In preparing a cash budget, what use is made of the number: cost of goods sold as a percentage of sales? Used to convert cost of goods sold numbers into inventory cost numbers to forecast cash collected from customers Used to convert loan borrowing amounts into loan repayment amounts to establish loan schedules Used to convert sales numbers into inventory cost numbers to forecast cash collected from customers O Used to convert sales numbers into inventory cost numbers to forecast cash paid for inventory purchases
In preparing a cash budget, what use is made of the number: cost of goods sold as a percentage of sales? Used to convert cost of goods sold numbers into inventory cost numbers to forecast cash collected from customers Used to convert loan borrowing amounts into loan repayment amounts to establish loan schedules Used to convert sales numbers into inventory cost numbers to forecast cash collected from customers O Used to convert sales numbers into inventory cost numbers to forecast cash paid for inventory purchases
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 8MCQ: The first step in preparing the sales budget is to a. prepare a sales forecast. b. review the...
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In preparing a cash budget, what use is made of the number: cost of goods sold as a percentage of sales?
Used to convert cost of goods sold numbers into inventory cost numbers to forecast cash collected from customers
Used to convert loan borrowing amounts into loan repayment amounts to establish loan schedules
Used to convert sales numbers into inventory cost numbers to forecast cash collected from customers
O Used to convert sales numbers into inventory cost numbers to forecast cash paid for inventory purchases
Expert Solution
Step 1
Cash budget is an important budget in finance.
It shows the different sources of cash receipts (inflows) and different uses of cash (cash outflows).
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