1.C.) Rose Turkish Delight Company is a new company and will start to operations in January, 2022. • Its beginning cash balance is 5,000 TL. • It plans to sell 1000 boxes at 20 TL each month. • 90% of the sales will be in cash, 10% of sales will be collected in the following month. • In January, short term investment will be sold at 10,000 TL in cash. • Production costs will be 20,000 TL and selling and administrative expenses will be 10,000 TL in January and all will be paid in cash • Production costs will be 20,000 TL and selling and administrative expenses will be 5,000 TL in February and all| will be paid in cash • Minimum cash balance is 5,000 TL. Prepare a cash budget for January and February 2022.

1.C.) Rose Turkish Delight Company is a new company and will start to operations in January, 2022. • Its beginning cash balance is 5,000 TL. • It plans to sell 1000 boxes at 20 TL each month. • 90% of the sales will be in cash, 10% of sales will be collected in the following month. • In January, short term investment will be sold at 10,000 TL in cash. • Production costs will be 20,000 TL and selling and administrative expenses will be 10,000 TL in January and all will be paid in cash • Production costs will be 20,000 TL and selling and administrative expenses will be 5,000 TL in February and all| will be paid in cash • Minimum cash balance is 5,000 TL. Prepare a cash budget for January and February 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Rose Turkish company is a new company and will start to operations in January, 2022. Its beginning cash balance is 5.000 TL It plans to sell 1000 boxes at 20 each month. 90of the sales will be in cash 10% of sales will be collected in the following month. In January, short term investment will be sold at 10,000 in cash Production costs will be 20, 000 and selling and administrative expenses will be 10, 000TL in January and all will be paid in cash Production costs will be 20.000 TL and selling and administrative expenses will be 5,000 February and all will be paid in cash Minimum cash balance is 5,000 Prepare a cash budget for January and February 2022
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