Bavarian Brew's schedule of projected cash disbursement
All of Bavarian Brew's sales are credit sales. The company collects 60% of its sales in the next month and the remainder in the month after that.
The company's purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the remainder in the month after that. The company's wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April. The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April. In addition, the company will pay a $175 dividend in February.
-If the cash balance at the beginning of March is $250,what is Bavarian Brew's cash balance at the end of the month?

Question

Bavarian Brew's schedule of projected cash disbursement
  All of Bavarian Brew's sales are credit sales. The company collects 60% of its sales in the next month and the remainder in the month after that.
The company's purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the remainder in the month after that. The company's wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April. The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April. In addition, the company will pay a $175 dividend in February.
-If the cash balance at the beginning of March is $250,what is Bavarian Brew's cash balance at the end of the month?

Quizplus · Accepted Answer

in: 726
out: 1128.25
cash balance: 250 + 726 - 1128.25 = -152.25

Bavarian Brew's Schedule of Projected Cash Disbursement