ABC Corporation began operations on January 1st of this year with a cash balance of $250,000. ABC had sales of $200,000 for the month of January, all on credit. ABC allows its customers 30 days to pay. ABC’s expenses for January equal $150,000, and ABC’s ending balance in accounts payable at January 31st is $50,000. In its cash budget for January, ABC’s ending cash balance should be equal to.
Practice exam two Question 1 Which of the following will most likely result in an increase in discretionary funding needed? Select one: The company’s profit margin increases. The company’s dividend payout ratio increases. The company’s assets are only operating at 50% of capacity. The company pays its accounts payable in 50 days, up from 45 […]