Avengers Inc. began operations on January 1 of the current year with a $25,000 cashbalance. 40% of sales are collected in the month of sale; 60% are collected in the monthfollowing sale. Similarly, 45% of purchases are paid in the month of purchase, and 55% are paid in the month following purchase. The following data apply to January - Sales$75000, purchases $60000 and operating expenses - $9000 and February Sales S80000, purchases $65000 and operating expenses - $18000. If operating expenses arepaid in the month incurred and include monthly depreciation charges of $5000, determine the change in Avenger's cash balance during January and February monthseparately and the cash balance at the end of January and February.

Avengers Inc. began operations on January 1 of the current year with a $25,000 cashbalance. 40% of sales are collected in the month of sale; 60% are collected in the monthfollowing sale. Similarly, 45% of purchases are paid in the month of purchase, and 55% are paid in the month following purchase. The following data apply to January - Sales$75000, purchases $60000 and operating expenses - $9000 and February Sales S80000, purchases $65000 and operating expenses - $18000. If operating expenses arepaid in the month incurred and include monthly depreciation charges of $5000, determine the change in Avenger's cash balance during January and February monthseparately and the cash balance at the end of January and February.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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