a)
Cash Collected in October = $15000 x50% + 14000 x 40% + 12000 x 10%
= $14300
Cash Collected in November = $15000 x50% + 15000 x 40% + 14000 x
10% = $14900
b)
Yes firm can run out of cash even after being profitable
Answer is
Rapid sales growth, since cash will be used for inventory but cash
not received for sales
Purchase of Equipment, since cash is used for purchase of
equipment
c)
encourage customers to pay in cash
encourage customers to pay early
postpone payments to suppliers
borrow money
August Budgeted sales are: Month Sales revenue $12,000 September $14,000 October $15,000 November $15,000 December $10,000...
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