Benjamin Netanyahu sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one month’s credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Benjamin rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for these quarterly in March, June, September and December. Benjamin withdraws $2,000 a month from his business for his own personal expenses. What is Benjamin's net cash inflow for March? $6,400 $6,800 $10,400 $10,800

Benjamin Netanyahu sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one month’s credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Benjamin rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for these quarterly in March, June, September and December. Benjamin withdraws $2,000 a month from his business for his own personal expenses. What is Benjamin's net cash inflow for March? $6,400 $6,800 $10,400 $10,800

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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