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Assuming Level Production Throughout the Year, and Assuming Receivables Are

Question 74

Multiple Choice

Assuming level production throughout the year, and assuming receivables are collected in two equal installments over the two months subsequent to the sales period, developing the related areas of the cash budget requires which of the following steps?


A) Calculate beginning accounts receivable balance.
B) Calculate COGS.
C) Estimate monthly net cash flow and bank borrowing or repayments.
D) Calculate ending inventory.

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