Po9 Xi sells fruit and vegetables from hismarket stall for cash. His budgeted salesfor February, March and April are$45,000, $50,000 and $55,000respectively. His suppliers allow him onemonth's credit in which to pay for thefruit and vegetables that he sells. Hispurchases cost is budgeted to be 80%of the sales value of his produce. Xirents his market stall at a cost of $1,000per month, payable on the first day ofeach month. Electricity costs for hismarket stall amount to $200 per monthand he pays for these quarterly inMarch, June, September and December.Xi withdraws $2,000 a month from hisbusiness for his own personal expenses.What is Xi's net cash inflow for March? 1.Prepare a cash flow statement 2.Calculate the cash inflow 3. Explain yourcalculations 4. Provide your analysis

Cash flow budget is an estimated statement of all cash receipts and all cash payments that are…

Answered: What is Xi's net cash inflow for March?…

What is Xi's net cash inflow for March? 1. Prepare a cash flow statement 2. Calculate the cash inflow 3. Explain your calculations 4. Provide your analysis

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
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The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of 1,000 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be at least twice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 50 and the value of the index for spot radio advertising is 80, how should the restaurant allocate its advertising budget to maximize the value of total audience exposure? a. Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure. b. Develop a spreadsheet model and solve the problem using Excel Solver.
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