cash management unit 15

Terdoo Registered Posts: 144 Dedicated contributor 🦉
can someone help with question please as follows:
the sales revenue is received as75% paid with the order and 25% paid 1 month after invoice,
Forecast sales are April 1,000,000, may 1,067,000 June 1,311,000 Jul 963,000 Aug 2,145,700 Sept 1,818,100 & Oct 1,193967
How do you calculate the cash sale and credit sale?

Andtrade creditor have the same month applys, 480,000 600,000 & 440,000 and so on
Invoice paid at first order50% and 50% paid one month after
how yo split the percentage with creditor?

Thanks in advance


  • Marga
    Marga Registered Posts: 981 Epic contributor 🐘
    hi i am doing this unit too

    Receipts April

    Cash Sales 75% of £1,000,000 = 750,000 that is the only thing you will receive in April

    Receipts May

    Cash Sales 75% of £1,067,000 = ....... this is the receipt for the month may cash sales
    Credit Sales 25% of £1,000,000 = ...... this is the receipt for the month in arreas (april)

    And so on .... in June you will have cash sales from June and credit sales from May ...

    if you have a go at that you may find a bit easier the creditors bit , if not come back and ask:)
  • Terdoo
    Terdoo Registered Posts: 144 Dedicated contributor 🦉
    Re cash management question

    am glad you are doing the same paper as me, how much do you get for the net cash flow?
    for April, i just don't have confident yet.

    Thank in advance
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
    Which paper are you doing? I'll do it too and see what we both come up with!! Going home now, so will do it Monday lunchtime and report back :-)
    Sitting this skills test on the 25th of March and it's NASTY!
    But it's the LAST thing to do, then I'll be an MAAT!!
    Have a good weekend everyone
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