Gyles Ltd. Expects sales for January and February to be $50,000 and $35,000 respectively. The collection pattern has been 30% of sales is collected in the month of sale and the other 70% collected in the month after sale. In addition, Gyles expects to sell property worth $3,000 in February. Gyles also expects to purchase materials of $15,000 and $8,750 in January and February respectively. Gyles pays 80% of the cost of materials purchased in the month of purchase and the other 20% in the month following the purchase. Direct labour payroll will be $12,500 and other expenditures are budgeted at $24,900. The other expenditures included depreciation of $10,000. If not told otherwise, payments are assumed to be made in the month incurred. On February 1, Gyles Ltd. Had a cash account balance of $1,230. The total cash available for the month of February is: a)$1,230 b)$45,500 c)$49,730 d)$85,000
Gyles Ltd. Expects sales for January and February to be $50,000 and $35,000 respectively. The collection pattern has been 30% of sales is collected in the month of sale and the other 70% collected in the month after sale. In addition, Gyles expects to sell property worth $3,000 in February. Gyles also expects to purchase materials of $15,000 and $8,750 in January and February respectively. Gyles pays 80% of the cost of materials purchased in the month of purchase and the other 20% in the month following the purchase. Direct labour payroll will be $12,500 and other expenditures are budgeted at $24,900. The other expenditures included
a)$1,230
b)$45,500
c)$49,730
d)$85,000
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