Cool Looks imports and distributes sunglasses in Southern ...

[ts19998]

Cool Looks imports and distributes sunglasses in Southern California. The company's peak selling season has just passed and forecasted sales for the next few months is shown in the top row of the table. 40% of sales are cash and are collected in the month of the sale. 60% of sales are on credit, and are collected in the month following the sale. Cool Looks purchases merchandise one month in advance of sales and the cost of goods sold is 70% of sales. Cool Looks' suppliers are paid one month after the purchase. General and administrative expenses are $6,750 a month. Interest payments are $200 per month. Cool Looks will begin September with a cash balance of $10,000.

Cool Looks

Sales Forecast and Cash Budget

​	Aug	Sept	Oct	Nov	Dec
Sales Forecast	$50,000	$20,000	$10,000	$30,000	$30,000
Cash Sales	​	​	​	​	​
Collections from last month	​	​	​	​	​
Total Cash Inflows	​	​	​	​	​
​	​	​	​	​	​
Purchases From Suppliers	​	​	​	​	​
Payments to Suppliers	​	​	​	​	​
General & Admin Expenses	​	6,750	6,750	6,750	​
Interest	​	200	200	200	​
Total disbursements	​	​	​	​	​
​	​	​	​	​	​
Net Cash Flow	​	​	​	​	​
​	​	​	​	​	​
Beginning cash balance	​	$10,000	​	​	​
Plus: Net Cash Flows	​	​	​	​	​
Ending Cash balance	$10,000	​	​	​

Referring to Cool Looks, what is the cash balance at the end of November?
◦ $17,150
◦ $19,150
◦ $19,750
◦ $21,250
◦ $22,000

[Tabitha_2016]

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 35% of students answer this correctly

[ts19998]

Thanks for the timely response, appreciate it

[aliotak]

Great answer, keep it coming