Tomatsui Company provided the following annual data: Sales P3,500,000 Cost of Sales P2,275,000 Operating Expenses P525,000 Depreciation & non-cash items in operating expenses amounted P77,500. Tomatsui Company operates 300 days annually. How much must be the company's minimum cash balance if 7 days requirement is desired ?
Tomatsui Company provided the following annual data: Sales P3,500,000 Cost of Sales P2,275,000 Operating Expenses P525,000 Depreciation & non-cash items in operating expenses amounted P77,500. Tomatsui Company operates 300 days annually. How much must be the company's minimum cash balance if 7 days requirement is desired ?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 9BE
Related questions
Question
5
Transcribed Image Text:Question 5
Tomatsui Company provided the following annual data:
Sales
P3,500,000
Cost of Sales
P2,275,000
Operating Expenses
P525,000
Depreciation & non-cash items in operating expenses amounted P77,500.
Tomatsui Company operates 300 days annually.
How much must be the company's minimum cash balance if 7 days requirement is
desired ?
OP63,525
OP65,333
P53,083
P81,667
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub