Quiz : findout the cash recieved in jan feb march from sales.

A company has sales as following:

Actual sales : Nov Rs 300,000 Dec Rs 320,000

Expected sales:
Jan Rs 400,000 Feb Rs 400,000 Mar Rs 500,000

Company takes 20% of all sales in cash. the remaining is to be recieved as follows
, 30% in next month and 50% in the month after that.

_____________________________________________________________

Complete the full question:

The company is a pure trading concern and it buy all sales in one month credit. The
cost of purchase is 50% of sales value.

Company has fixed administrative expenses every month which Rs. 20,000 all paid in
next moth. Selling expenses are also fixed for all months at Rs 10,000 all paid in
cash.

At the begining of january company has cash balance of Rs. 100,000. Company does
notplan to engage in any financinag or investing activity with excess cash.

Calcualte the net cashflow from operation, and cash balance available atthe end of
period.