Nizwa Company prepares its budget for January-April period. On 1 January, the cash available is 15000 OMR. The financial information is given in the table below.   Sales  Purchases    Expenses December       72000        45000           7000 January       85000        53000           9000 February       90000        54000           6000 March       95000        65000         11000 April     105000        75000         13000 Additional Information: (a) Period of credit allowed by suppliers is one month (b) 30 % of sale is for cash and the period of credit allowed to customer for credit sale one month. (c) The period allowed in payment of expenses is one month. Which of the following is the total of cash balances at the end of February and March?   Select one: a. 158300 b. 95600 c. 131300 d. 184100 Clear my choice

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
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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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Nizwa Company prepares its budget for January-April period. On 1 January, the cash available is 15000 OMR. The financial information is given in the table below.

  Sales  Purchases    Expenses
December       72000        45000           7000
January       85000        53000           9000
February       90000        54000           6000
March       95000        65000         11000
April     105000        75000         13000

Additional Information:

(a) Period of credit allowed by suppliers is one month

(b) 30 % of sale is for cash and the period of credit allowed to customer for credit sale one month.

(c) The period allowed in payment of expenses is one month.

Which of the following is the total of cash balances at the end of February and March?

 

Select one:
a. 158300
b. 95600
c. 131300
d. 184100
Clear my choice
 
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