Asked by
Isabel Fuentes
on Dec 17, 2024
Verified
Gilbert's expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costs were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Payments of manufacturing costs are as follows: 25% in the month of production and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending balance on September 30 would be
A) $61,500
B) $75,000
C) $72,300
D) $71,500
Beginning Inventory
The value of goods available for sale at the start of an accounting period, prior to any purchases or production during the period.
Ending Inventory
The value of goods available for sale at the end of an accounting period after goods sold are subtracted.
August Sales
The total sales revenue generated by a business during the month of August.
- Master the basics of cash flow management, with an emphasis on the transactions of receipts and payments.
- Forecast cash receipts and payouts in alignment with sales and expense projections.
Verified Answer
CI
Learning Objectives
- Master the basics of cash flow management, with an emphasis on the transactions of receipts and payments.
- Forecast cash receipts and payouts in alignment with sales and expense projections.