JJM Corporation has been engaged in the process of forecasting its financing needs overthe next quarter and has made the following forecasts of planned cash receipts anddisbursements:The monthly sales for the year of 2015:AprilMayJuneJulyRM600,000500,000520,000AugustSeptemberOctoberNovemberRM530,000520,000560,000580,000550,000i) The firm's sales of 40% is collected in the month of sale and the remainingbalance will be collected equally in the following two months after sales.The raw materials are 80% of sales purchased two (2) months before thesales month. The supplier is paid one month after the purchases on the cashpayment basis.i)

The budget is prepared on the basis of past years' data.

JJM Corporation has been engaged in the process of forecasting its financing needs over the next quarter and has made the following forecasts of planned cash receipts and disbursements: The monthly sales for the year of 2015: April May June July 牌 RM 600,000 500,000 520,000 550,000 August September October RM 530,000 520,000 560,000 580,000 November ) The firm's sales of 40% is collected in the month of sale and the remaining balance will be collected equally in the following two months after sales. i) The raw materials are 80% of sales purchased two (2) months before the sales month. The supplier is paid one month after the purchases on the cash navment basis

JJM Corporation has been engaged in the process of forecasting its financing needs over the next quarter and has made the following forecasts of planned cash receipts and disbursements: The monthly sales for the year of 2015: April May June July 牌 RM 600,000 500,000 520,000 550,000 August September October RM 530,000 520,000 560,000 580,000 November ) The firm's sales of 40% is collected in the month of sale and the remaining balance will be collected equally in the following two months after sales. i) The raw materials are 80% of sales purchased two (2) months before the sales month. The supplier is paid one month after the purchases on the cash navment basis

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 1EP

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