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BU1002 Accounting for Decision Making Assignment - James Cook University, Singapore
Question - ZHL Corp wishes to prepare the cash budget for the month of April 2021 and has provided projected sales revenue data below:
Projected Sales:
February 2021
$205,000
March 2021
$220,000
April 2021
$250,000
All sales are on credit with 70% collected during the month of sale, 25% collected during the month following the sale, and 5% during the second month after the sale.
Required -
1. Prepare the cash receipts section of a cash budget for ZHL Corp for the month of April 2021.
2. Discuss how the cash budgeting process will help ZHL Corp achieve its goals.
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