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Benjamin Netanyahu sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one month’s credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Benjamin rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for these quarterly in March, June, September and December. Benjamin withdraws $2,000 a month from his business for his own personal expenses. What is Benjamin's net cash inflow for March?       $6,400       $6,800       $10,400       $10,800

Benjamin Netanyahu sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one month’s credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Benjamin rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for these quarterly in March, June, September and December. Benjamin withdraws $2,000 a month from his business for his own personal expenses. What is Benjamin's net cash inflow for March?       $6,400       $6,800       $10,400       $10,800

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 10PA: Sports Socks has a policy of always paying within the discount period and each of its suppliers...
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Benjamin Netanyahu sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one month’s credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Benjamin rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for these quarterly in March, June, September and December. Benjamin withdraws $2,000 a month from his business for his own personal expenses. What is Benjamin's net cash inflow for March?

 
 
 
$6,400
 
 
 
$6,800
 
 
 
$10,400
 
 
 
$10,800
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