COGS are 80% of sales. You collect 80% of sales in the month of sales and the re
ID: 2613274 • Letter: C
Question
COGS are 80% of sales. You collect 80% of sales in the month of sales and the remaining 20% in the month following sales. You purchase 60% of your COGS in the month of sale and 40% in the month prior to the sale. you pay for 70% of purchases in the month that it is purchased and the remaing 30% in the month after it is purchased.
How much Inventory was purchased in march?
a 2360 b 2920 c3560 d4320
what was accounts REC balance in JAN
a. 4200 b4800 c 5400 d 5800
how much cash was used in FEB
a 4260 b 4720 c 5440 d 6200
DEc JAN FEB MAR Apr MAY Sales 10000 7000 6000 5000 6000 7000 COGS 8000 5600 4800 4000 4800 5600 cash REC 7600 5200 5800 purchases 7040 5280 4480 5120 cash used 5808 4368 4880 CASH Gen 1792 832 920 Cash 1000 2792 4272 5104 6024 Acounts REC 6000 5200 5000 5200 INV 2800 2480 2160 2480 2800 Accounts PAY 4760 4232 3992 3944 4184Explanation / Answer
1)correct option is"d" - 4320
[march COGS 4000*.60= 2400 + april COGS 4800*.40 = 1920 ]
2)correct option is "c"-5400
[rec at beginning-6000- dec sales receipt 2000 (10000*.20) + rec of jan 1400 (7000*.20)]
[6000-2000+1400 =5400]
3)correct option is "B" - 4720
[feb purchase -4480*.70 + jan purchase 5280*.30]
[3136+1584=4720]
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