Reference no: EM133140353

Question - The ASD Company, which produces a single product that is sold for 10€ per unit, is currently producing the budget for the period July - September of year N. The following are the budgeted sales these months:

50% of sales are expected to be made on cash and 50% on credit. Of these credit sales, 30% are expected to be paid during the month 50% are expected to be paid at the end of the following month and 20% are expected to be paid at the end of the second month following the sale. At the beginning of July, the receivables were 180 000€.

Required - Answer the following with explanations-

The cash expected to be collected in September of year N is:

1. 440 000€

2. 620 000€

3. 365 000€

4. 250 000€

5. None of the above

The value of Sales in the budgeted P&L of the 3rd Quarter:

1. 1 000 000€

2. 995 000€

3. 1 175 000€

4. 1 200 000€

5. None of the above

The value of Receivables from Clients in the budgeted Balance Sheet at 30/September of year N is:

1. 155 000€

2. 215 000€

3. 30 000€

4. 205 000€

5. None of the above