NUBD Co. has the following sales forecasts for the selected three month period in 2021: Month April May June Sales P12,000 7,000 8,000 Seventy five percent of sales are collected in the month of the sale, and the remainder is collected in the following month. Accounts receivable (April 1, 2021) Cash balance (April 1, 2021) P10,000 P5,000 Minimum cash balance is P5,000. Cash can be borrowed in P1,000 increments from the local bank (assume no interest charges).
NUBD Co. has the following sales forecasts for the selected three month period in 2021: Month April May June Sales P12,000 7,000 8,000 Seventy five percent of sales are collected in the month of the sale, and the remainder is collected in the following month. Accounts receivable (April 1, 2021) Cash balance (April 1, 2021) P10,000 P5,000 Minimum cash balance is P5,000. Cash can be borrowed in P1,000 increments from the local bank (assume no interest charges).
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Question
How much cash would be collected in June from sales?
P7,700
P8,500
P7,750
P10,000
![NUBD Co. has the following sales forecasts for the selected three month period in
2021:
Month
April
May
June
Sales
P12,000
7,000
8,000
Seventy five percent of sales are collected in the month of the sale, and the
remainder is collected in the following month.
Accounts receivable (April 1, 2021)
Cash balance (April 1, 2021)
P10,000
P5,000
Minimum cash balance is P5,000. Cash can be borrowed in P1,000 increments from
the local bank (assume no interest charges).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26016a55-f59a-4506-98e4-9f2f11cfb307%2F5e1f2842-6d93-4818-af29-f65a9c992f92%2Fkavdofw_processed.png&w=3840&q=75)
Transcribed Image Text:NUBD Co. has the following sales forecasts for the selected three month period in
2021:
Month
April
May
June
Sales
P12,000
7,000
8,000
Seventy five percent of sales are collected in the month of the sale, and the
remainder is collected in the following month.
Accounts receivable (April 1, 2021)
Cash balance (April 1, 2021)
P10,000
P5,000
Minimum cash balance is P5,000. Cash can be borrowed in P1,000 increments from
the local bank (assume no interest charges).
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