Question

Ex 8 and EX 9 with explainations please.

Exercise 8 Your Co. pays 60 % of its purchases in the month of the purchase and 40% the following month. Calculate budgeted cash disbursements from purchases. 16 January February March April May June 80 18 160 19 120 20 160 200 100 LT March disbursements for purchases 25 April disbursements for purchases X 27 May disbursements for purchases х 29 31 222

Answer 1

Exercise 8
	Feb	Mar	Apr	May
Purchases	160	120	160	200
Cash disbursements
Current month		72	96	120	60% of month
Following month		64	48	64	40% of previous month
Purchases disbursements		136	144	184

Exercise 9
	Nov	Dec
Opening balance	$           160	$           672
Cash receipts:
Receipts from customers	$        1,600	$        1,280
Total cash receipts	$        1,600	$        1,280
Cash disbursements:
Equipment purchase	$         (120)	$              -
Loan interest	$              (8)	$              (8)	W.N 1
Other cash expenditures	$         (240)	$         (264)
Payment to suppliers	$         (560)	$         (672)
Salary payments	$         (160)	$         (160)
Total cash payments	$      (1,088)	$      (1,104)
Net balance	$           672	$           848
Minimum balance	$           160	$           160
Excess balance	$           512	$           688
W.N 1
Opening Loan balance	$           400	$           400
Interest @ 2%	$               8	$               8

Please like the solution if satisfied with the answer and if any queries please mention it in comments...thanks