Cash budget-cash flow
Not what you're looking for?
Use the information below to answer the following question(s).
The following information pertains to Tiffany Company:
Month Sales Purchases
January $30,000 $16,000
February $40,000 $20,000
March $50,000 $28,000
Cash is collected from customers in the following manner:
Month of sale 30%
Month following the sale 70%
40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Labor costs are 20% of sales. Other operating costs are $15,000 per month (including $4,000 of depreciation). Both of these are paid in the month incurred.
The cash balance on March 1 is $4,000. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.
How much cash will be paid to suppliers in March?
a. a. $28,000
b. b. $44,000
c. c. $23,200
d. d. None of the above is correct.
Purchase this Solution
Solution Summary
Calculates cash that will be paid to suppliers.
Solution Preview
How much cash will be paid to suppliers in March?
a. a. $28,000
b. b. $44,000
c. c. $23,200
d. d. None of the above is ...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Motivation
This tests some key elements of major motivation theories.