Gerald's Produce provides quality fruits and vegetables to ...

[FButt]

Gerald's Produce provides quality fruits and vegetables to upscale restaurants in the tri-cities area. A sales forecast for Gerald's is shown on the top row of the table. Gerald makes 100% of his sales on credit. Gerald collects 50% of sales in the month following the sale, and the remaining 50% two months later. Gerald buys his produce in the same month as the sales. The cost of the fruits and vegetables is half of sales. Suppliers require Gerald to pay cash for his purchases. Gerald makes lease payments on his van of $500 per month, and gas costs him $100 per month. Gerald's Produce has a cash balance of $1,000 at the beginning of January. 

Sales Forecast and Cash Budget

Gerald's Produce

​	Nov	Dec	Jan	Feb	March
Sales Forecast	$20,000	$15,000	$5,000	$15,000	$20,000
Collections from last month	​	​	​	​	​
Collections from 2 months ago	​	​	​	​	​
Total Cash Inflows	​	​	​	​	​
​	​	​	​	​	​
Purchases From Suppliers	​	​	​	​	​
Payments to Suppliers	​	​	​	​	​
Van Lease Payments	$500	$500	$500	$500	$500
Gas	$100	$100	$100	$100	$100
Total disbursements	​	​	​	​	​
​	​	​	​	​	​
Net Cash Flow	​	​	​	​	​
​	​	​	​	​	​
Beginning cash balance	​	​	1,000	​	​
Plus: Net Cash Flows	​	​	​	​	​
Ending Cash balance	​	1,000	​	​

Referring to Gerald's Produce, what are Gerald's total cash outflows (disbursements) in February?
◦ $2,500
◦ $3,100
◦ $7,500
◦ $8,100
◦ $10,600

[jessofishing]

A FREE account is required to view all solutions! Click to Register

Login with Facebook Login with Google Login with Email

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 64% of students answer this correctly

[FButt]

Great answer, keep it coming

[ryhom]

Thanks for the timely response, appreciate it