Reference no: EM132561932

Manal Pvt.Ltd. budgeted incomestatement for 1st quarter 2020

Description              JANUARY                  FEBRUARY            MARCH

Sales                          285,000                323,000         221,000

Purchases                   129,000                168,000             95,000

Wages                          35,000                 37,000            30,000

Supplies                         26,000                 23,000           21,500

Utilities                           6,500                   8,700              7,200

Rent                               15,000                  12,800              13,600

Insurance                          12,000                12,000              12,000

Advertising                          24,500               28,500             18,000

Depreciation                        20,000               20,000              20,000

Net Profit                             17,000               13,000               3,700

Manal Receivable Trend:

30% of Sales are collected in the month of sale, 30% of Sales are collected after the month of sale. 40% of Sales are collected two months after the sale is made

Manal Payable Trend:

10% of Purchases are paid for in the month of purchase, 35% of Purchases are paid after the month of purchase, and 55% of Purchases are paid two months after the purchase is made

Additional Information:

Rent and Insurance expense were prepaid at the end of 2020

All other expenses are paid for in the month they were incurred

November Sales = 195,000 November Purchases = 100,000

December Sales = 250,000 December Purchases = 165,000

Required:

Question 1: Calculate to show Jan-Mar 2020 cash collection from sale, cash payment of purchases and total expenses each month separately on the basis of above given data.