XoloInc. had an August ending cash balance of $70,000. As well, it had sales of $60,000 in August, $80,000 in September, and projects sales of $95,000 for October, $115,000 for November, and
$145,000 for December. The ﬁrm collects its receivables in the month after the sale. Given this
Information, calculate its cash balance at the end of November.

Question

Quizplus · Accepted Answer

The firm collects its receivables in the month after the sale. So, the cash balance at the end of November will be the sum of the August ending cash balance, the sales in September and October, and the receivables from the sales in August and September.August ending cash balance: $70,000Sales in September: $80,000Sales in October: $95,000Receivables from August sales: $60,000Receivables from September sales: $80,000Cash balance at the end of November: $70,000 + $80,000 + $95,000 + $60,000 + $80,000 = $325,000

XoloInc Had an August Ending Cash Balance of $70,000