Collection period of credit sales and pay off the

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collection period of credit sales and pay off the creditors faster. Hence, it can reduce the amount of time between inflows and outflows.
3. Three of the following are some of the most important components of cash flow. Which one is not?
4. Too much stock may negatively affect your sales ability and your relationship with customers.
Managing Finance, Assessment No.1 Page 29 v1.1, Last updated on 08/09/2014
T-1.8.1 customers in terms of product quality. Hence, it can be stated that too much stock may negatively affect the sales ability and customer relationship. Week 6 Task 22: Part a: Accounts Receivable Collection Schedule and Cash Flow Statement Part b: Create an EXCEL file and complete the calculations through using formula(3 Mark) Stock & Co., a manufacturing company, need to produce a cash flow budget as part of an overdraft application with their bank. The following are some of Stock’s budgeted figures: Credit sales $ Purchases $ Wages $ November 39 000 26 975 3 185 December 41 600 31 200 3 900 January 23 400 52 650 3 600 February 37 700 53 300 3 470 March 27 300 58 175 3 380 Budgeted cash at bank on 1 January is $5590. Though credit terms of sale are payment by the end of the month following the month of supply, Stock & Co. can expect half of the sales to be paid on the due date, with the other half being paid during the following month. Creditors are paid during the month following the month of supply. Wages are paid in the month they are owed. Utilising the following tables for format, prepare a cash budget for the quarter 1 January to 31 March 20XX. Workings: Accounts Receivable Collection Schedule January February March Receipts from sales in: $ $ $ November 19500 December 20800 20800 Managing Finance, Assessment No.1 Page 30 v1.1, Last updated on 08/09/2014
T-1.8.1 January 11700 11700 February 18850 TOTAL COLLECTIONS 40300 32500 30550 Cash flow plan January February March $ $ $ Balance b/fwd. 5590 11090 -12530 Cash receipts (from credit sales) 40300 32500 30550 Total Funds Available 45890 43590 18020 Payments Accounts Payable 31200 52650 53300 Wages 3600 3470 3380 Total Payments 34800 56120 56680 Balance c/fwd. 11090 -12530 -38660

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