Dimagiba Company began operation at the beginning of 2021. During the year, it had cash sales of 6,875,000 and sales on installment basis of 16,500,000. Dimagiba adds a markup on cost of 25% on cash sales and 50% on installment sales. Installments
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Dimagiba Company began operation at the beginning of 2021. During the year, it
had cash sales of 6,875,000 and sales on installment basis of 16,500,000. Dimagiba
adds a markup on cost of 25% on cash sales and 50% on installment sales.
Installments receivable at the end of 2021 is 6,600,000.
The resulting realized gross profit for 2021 is:
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- You are presented with the following information extracted from your organisation’s financial statements for the year ended 31 December 2019. Sales on 31 December 2019 were K110 million. For the year 2020, sales are expected to grow at 8% per month for the year. 90% of the sales made are on account; the remainder on cash. Credit customers pay as follows: 85% in the month following the sale; 10% two months after the sale month. Irrecoverable debts are expected at the historical norm of 5% of credit sales. Inventory levels are maintained at 20% of the following month’s sales. Accounts payables are at settled at 30 days after purchase. QUESTION Prepare a cash flow forecast for the three-month period from January to March 2020. 2. Calculate the following for each month of the forecast period: Inventory days Accounts receivable days Accounts receivable days Cash conversion cycle Briefly explain the implication of your assessment in (2) above on the continued…The following information pertain to installment sales of Lapillus Variety Store: • Down payment: 20% • Installment sales: P545, 000 in 2020, P785,000 in 2021, and P968,000 in 2022 • Markup on cost: 35% • Collections after down payment: 40% during year of sale, 35% during the year after sale, and 25% on the third year. How much is the realized gross profit for year 2020?Khoury Home carried out the following operations during the 2nd quarter of the year 2020: Sales $ 250,000 HT; Purchases $ 80,000 excl. What is the amount of VAT to be paid to the Public Treasury knowing that the VAT rate is 11%:
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