Q1: VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available: Creditors give one month credit Salaries are paid in the current month Fixed costs are paid in one month arrears and include a charge for depreciation Rs.10,000 per month Credit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents bad debts. Month Cash Sales Credit Sales Purchases Salaries Fixed Overheads July 148,000 110,000 18,000 60,000 August 164,000 122,400 18,000 60,000 September 40,000 160,000 120,000 19,000 60,000 October 44,000 180,000 138,000 19,000 64,000 November 50,000 200,000 150,000 20,000 64,000 Note: No need to enter currency symbol and comma just type numbers (for example: 10000) D: Calculate 1st month credit sales for the month of september. E: Calculate 1st month credit sales for the month of october. F: Calculate 1st month credit sales for the month of november.
Q1: VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available: Creditors give one month credit Salaries are paid in the current month Fixed costs are paid in one month arrears and include a charge for depreciation Rs.10,000 per month Credit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents bad debts. Month Cash Sales Credit Sales Purchases Salaries Fixed Overheads July 148,000 110,000 18,000 60,000 August 164,000 122,400 18,000 60,000 September 40,000 160,000 120,000 19,000 60,000 October 44,000 180,000 138,000 19,000 64,000 November 50,000 200,000 150,000 20,000 64,000 Note: No need to enter currency symbol and comma just type numbers (for example: 10000) D: Calculate 1st month credit sales for the month of september. E: Calculate 1st month credit sales for the month of october. F: Calculate 1st month credit sales for the month of november.
Chapter6: Managing Cash Flow
Section: Chapter Questions
Problem 13SEP
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Q1: VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available:
- Creditors give one month credit
- Salaries are paid in the current month
- Fixed costs are paid in one month arrears and include a charge for
depreciation Rs.10,000 per month - Credit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents
bad debts.
|
Month |
Cash Sales |
Credit Sales |
Purchases |
Salaries |
Fixed |
|
July |
|
148,000 |
110,000 |
18,000 |
60,000 |
|
August |
|
164,000 |
122,400 |
18,000 |
60,000 |
|
September |
40,000 |
160,000 |
120,000 |
19,000 |
60,000 |
|
October |
44,000 |
180,000 |
138,000 |
19,000 |
64,000 |
|
November |
50,000 |
200,000 |
150,000 |
20,000 |
64,000 |
Note: No need to enter currency symbol and comma just type numbers (for example: 10000)
D: Calculate 1st month credit sales for the month of september.
E: Calculate 1st month credit sales for the month of october.
F: Calculate 1st month credit sales for the month of november.
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