a .Prepare an estimate of cash position for three months from April to June b. Based on the budget prepared, evaluate the cash position of the comupany, give your comments and provide suitable suggestion to the management on effective cash managenent. Question:Imagine you are the finance manager of Al Mohsin Company. The company management feels that thecash management of the company should be made more effective. The following information from thecompany's records is available to you:MiscellaneousMonthSalesWages7,000Purchaseexpenses1,000February40,00020,000March55,00014,0008,0003,000AprilMay60,00028,0009,0002,00074,00030,0009,0002,000June90,00032,0008,8003,500Additional Information1. Al Mohsin LLC expects to have RO 8,000 cash balance at the beginning of April.2. Period of credit allowed by suppliers – 2 months3. 40% of the total sale is for cash. Half of the credit sale is collected in the next month of sale andthe remaining half in the following month after that.4. Delay in payment of wages 1/4 month5. Delay in payment of expenses 1/2 month6. Income tax to be paid in the month of June RO 1,500.

SOLUTION- BUDGETING IS THE PROCESS OF CREATING A PLAN TO SPEND YOUR MONEY. THIS SPENDING PLAN…

Question: Imagine you are the finance manager of Al Mohsin Company. The company management feels that the cash management of the company should be made more effective. The following information from the company's records is available to you: Miscellaneous Wages 7,000 Month Sales Purchase expenses 1,000 February 40,000 20,000 March 55,000 60,000 14,000 8,000 3,000 28,000 2,000 April May 9,000 74,000 30,000 9,000 2,000 June 90,000 32,000 8,800 3,500 Additional Information 1. Al Mohsin LLC expects to have RO 8,000 cash balance at the beginning of April. 2. Period of credit allowed by suppliers - 2 months 3. 40% of the total sale is for cash. Half of the credit sale is collected in the next month of sale and the remaining half in the following month after that. 4. Delay in payment of wages 1/4 month 5. Delay in payment of expenses 1/2 month 6. Income tax to be paid in the month of June RO 1,500.

Question: Imagine you are the finance manager of Al Mohsin Company. The company management feels that the cash management of the company should be made more effective. The following information from the company's records is available to you: Miscellaneous Wages 7,000 Month Sales Purchase expenses 1,000 February 40,000 20,000 March 55,000 60,000 14,000 8,000 3,000 28,000 2,000 April May 9,000 74,000 30,000 9,000 2,000 June 90,000 32,000 8,800 3,500 Additional Information 1. Al Mohsin LLC expects to have RO 8,000 cash balance at the beginning of April. 2. Period of credit allowed by suppliers - 2 months 3. 40% of the total sale is for cash. Half of the credit sale is collected in the next month of sale and the remaining half in the following month after that. 4. Delay in payment of wages 1/4 month 5. Delay in payment of expenses 1/2 month 6. Income tax to be paid in the month of June RO 1,500.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 3TIF: Communication Todd Johnson is the Vice President of Finance for Boz Zeppelin Industries Inc. At a...

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