Question

The table contains the Sales estimates for the next year.

Month	Sales $	Month	Sales $
Jan	46,442	July	37,618
Feb	36,143	Aug	39,034
Mar	39,034	Sep	46,442
Apr	37,618	Oct	39,034
May	46,442	Nov	36,143
June	36,143	Dec	37,618

• The Purchases are 78% of Sales. Purchases are paid in the following month.
• The administrative expenses of $7,990 are paid each month
• Tax expenses of $12,127 are paid in March, June, September, and December each year.
• Rent expenses of $24,482 are paid in June and December.

What is the cash outflow for November?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

Answer 1

Cash Outflow for November will be as follows:

Purchases of October = 39034*78% = $30,446.52

Administrative Expenses = $7990

Tax Expenses in November = 0

Rent Expenses = 0

Cash outflow for November = $38,436.52