A company has made the following budget forecasts for next year: R Opening cash balance 1 January 24 000 Net profit from trading for the year 100 000 Payment of tax 25 000 Payment of dividends 20 000 Purchase of new fixed assets 70 000 Annual depreciation charge 22 000 1 January 31 December Stocks R32 000 R35 000 Debtors R41 000 R28 000 Creditors R16 000 R31 000 No other relevant information is available. What is the company's budgeted cash holding at 31 December next year? Select one: a. R56 000 b. R34 000 c. R26 000 d. R6 000

A company has made the following budget forecasts for next year: R Opening cash balance 1 January 24 000 Net profit from trading for the year 100 000 Payment of tax 25 000 Payment of dividends 20 000 Purchase of new fixed assets 70 000 Annual depreciation charge 22 000 1 January 31 December Stocks R32 000 R35 000 Debtors R41 000 R28 000 Creditors R16 000 R31 000 No other relevant information is available. What is the company's budgeted cash holding at 31 December next year? Select one: a. R56 000 b. R34 000 c. R26 000 d. R6 000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 33E: A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent...

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	R
Opening cash balance 1 January	24 000
Net profit from trading for the year	100 000
Payment of tax	25 000
Payment of dividends	20 000
Purchase of new fixed assets	70 000
Annual depreciation charge	22 000

	1 January	31 December
Stocks	R32 000	R35 000
Debtors	R41 000	R28 000
Creditors	R16 000	R31 000

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