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What is the cash balance at the end of the quarter

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Reference no: EM132540648

Question - The following financial data are derived from the accounting system in the beginning of January:

Accounts receivable 23,000

Inventory 24,200

Cash (overdraft) (7,000)

Dividend payable 1,000

Equipment at cost 80,000

Accumulated depreciation 19,200

Long-term note payable 14% 40,000

Share capital 40,000

Retained earnings 20,000

ABC Company expects the following results during the second quarter of the year (next three months):

Jan 150,000 Sales 100,000 Purchases 20,000 Expenses including depreciation

Feb 200,000 Sales 150,000 Purchases 25,000 Expenses including depreciation

Mar 300,000 Sales 280,000 Purchases 30,000 Expenses including depreciation

The company generates all revenues from sales on account and is able to collect all outstanding balances. Its collection pattern is as follows:

80% is collected during the month of sales (a 4% discount is given for payment in this period); and the remaining 20% is collected in the following month.

The company pays for its purchase made in the month of purchase in order to take advantage of a 10% settlement discount, calculated on the gross purchase amount presented above. Inventory levels are expected to remain constant throughout the quarter. There is no fluctuation in price when the company purchases its inventory. Depreciation rate of the equipment is 12% on cost per year. Expenses are recorded on a monthly basis. Expenses are paid for in the month in which they are incurred. The declared dividend will be paid in April. There is no repayment of the long-term note during the quarter. Interest on the note for the quarter will be paid in June.

Required -

What is the total cash receipts for the quarter?

What is the total cash payments for the quarter?

What is the cash balance at the end of the quarter?

What is the gross profit for the quarter?

What is the net profit for the quarter?

What is the total current assets at the end of the quarter?

What is the total non-current assets at the end of the quarter?

What is the total liabilities at the end of the quarter?

What is the total shareholders' equity at the end of the quarter?

Reference no: EM132540648

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