ABC is an import/export company that holds no inventories. Each period ABC earns a gross profit of 20% on sales, and has
Posted: Fri Jul 01, 2022 8:27 am
ABC is an import/export company that holds noinventories. Each period ABC earns a gross profit of 20% onsales, and has found that its period and trade payables balancealways equates to 40% of cost of sales for thatperiod.
For its next trading period, August, ABC hasbudgeted sales to fall by 10% from the level achieved in July of£332,000 and a further 5% fall is budgeted forSeptember
The cash budget for ABC will therefore show thefollowing amount payable to trade suppliers during the month ofSeptember (to the nearest pound) as:
£227.088
£231.800
£1283.800
£1289.536
For its next trading period, August, ABC hasbudgeted sales to fall by 10% from the level achieved in July of£332,000 and a further 5% fall is budgeted forSeptember
The cash budget for ABC will therefore show thefollowing amount payable to trade suppliers during the month ofSeptember (to the nearest pound) as:
£227.088
£231.800
£1283.800
£1289.536