Day: October 28, 2022

A cash budget is prepared for a new business.

The information available is as follows:

• capital introduced – £60,000
• goods sold in first month – £12,000
• loan from the bank – £20,000

25% of sales constitute cash sales, with the balance payable over the following two months.

What are the total cash receipts in month one?

Select ONE answer:

1. £60,000
2. £72,000
3. £80,000
4. £83,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct = = > £60k + £30k + £12k/4

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