Q5: P-5-5. Best Choice Trading Corporation has projected cost of goods sold (CGS) for July,...
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Q5: P-5-5. Best Choice Trading Corporation has projected cost of goods sold (CGS) for July, 2019 at Rs. 1.800,000. Of this amount Rs. 100,000 represents fixed overheads. The variable cost average is 65% of sales. The ratio of cost of goods sold to sale is 60%. The net income generated is 20% of sales. All purchases and expenses, except depreciation, are paid 60% in the month of incurring costs while 40% in the following month. Depreciation amount is Rs. 50,000 per month. The collection of cash from sale is 70% in the month of sale while the balance during next month. Required: 1. Compute the budgeted sales for the month of July, 2019. 2. Determine the expected variable selling and administrative expenses for July, 2019. 3. Calculate the total fixed expenses for the month of July, 2019. Compute the amount of fixed selling and administrative expenses portion. 4. What is the budgeted cash collection and cash disbursement for July, 2019 transactions
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