Question

Question 8 0.6 points Save Ans Romona Company expects its November sales to be 15% higher than its October sales of $220,000. All sales are on credit and are collected as follows: 25% in the month of the sale and 70% in the following month. Purchases were $150,000 in October and are expected to be $100,000 in November. Purchases are paid 30% in the month of purchase and 70% in the following month. The cash balance on November 1 is $13,100. The cash balance on November 30 will be $82,250 $69,150 $230,350 $95,350

Answer 1

solution October salez = 220000 X 70% = 154000 November Sales, = 220000 X 1154% X 25% = 63250 Total cash rucerpt = 154000 +63250 = 217250 October purchases = 150000 x 70% = 105000 November purchases = 100000 x 30% = 30000 Total cash disbursement = 105000 + 30000 135000 particularis Amount opening cash balance 13100 217250 Add: Total cash receipte Less: Total cash disbursement Ending cash balance 135000 96350 The option is 95350 ,