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Chapter 11: Cash management and control Discussion questions 1. Explain why it is important to manage cash flows. Suggest methods a business can use to manage its cash flows. 3. Internal control of cash is strengthened by requiring that each day’s receipts are deposited intact and that all payments are best made by electronic transfer. Do you agree? Why or why not? Exercise 11.10 Petty cash fund transactions During October, Hair Styles Pty Ltd experiences the following transactions in establishing a petty cash fund. Required a. Journalise the entries in October that pertain to the petty cash fund. (LO4) 1
Problem 11.27 Cash budget Brockbank Builders Ltd is preparing a cash budget for May and June of 2022. Past records reveal that 20% of all credit sales are collected during the month of sale, 60% in the month following the sale, 10% in the second month following the sale and 10% in the third month following the sale. The company pays for 75% of purchases in the month after purchase,

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