Sales Collection – NBC Institute

BMF – Nov 2022 – L1 – SB – Q3 – Basics of Business Finance and Financial Markets

Candidates are required to prepare a monthly cash budget for a three-month period based on the data provided for Homom Nigeria Limited.

Question

The following information was extracted from the books of Homom Nigeria Limited.

Months	Sales (₦’000)	Materials (₦’000)	Wages (₦’000)	Overheads (₦’000)
February	40,000	20,400	7,600	3,800
March	42,000	20,000	7,600	4,200
April	46,000	19,600	8,000	4,600
May	50,000	20,000	8,400	4,800
June	60,000	21,600	9,000	5,000

Additional details regarding payments, credit sales, machine installation, and dividends are provided.

Required:
Prepare a monthly cash budget for the three months ending June 2022. Show your workings. (20 Marks)

Answer

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Tags: Cash Budget, Machine Installation, Overheads, Sales Collection
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2022

MI – Mar-Jul 2020 – L1 – SA – Q7 – Budgeting

Calculate the sales collection in Month 4 based on given purchasing and collection pattern.

Question

MNO is a retailer of various domestic goods, selling all purchases in the same month, therefore not keeping any stock. The company’s policy is to sell at a margin of 9.091% and collection of sales proceeds is 50% in the month of sales, 30% the month after, and the balance in the 3rd month. Purchases for the past four months are as follows:

Month	Amount (N)
1	65,000,000
2	72,000,000
3	60,000,000
4	80,000,000

What is the sales collection in Month 4?

A. N64,000,000
B. N70,400,000
C. N72,000,000
D. N78,793,459
E. N79,200,000

Answer

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Tags: Cash Budgeting, Revenue management, Sales Collection
Level: Level 1

Topic: Budgeting
Series: MAR/JULY 2020

BMF – Nov 2022 – L1 – SB – Q3 – Basics of Business Finance and Financial Markets

Candidates are required to prepare a monthly cash budget for a three-month period based on the data provided for Homom Nigeria Limited.

Question

The following information was extracted from the books of Homom Nigeria Limited.

Months	Sales (₦’000)	Materials (₦’000)	Wages (₦’000)	Overheads (₦’000)
February	40,000	20,400	7,600	3,800
March	42,000	20,000	7,600	4,200
April	46,000	19,600	8,000	4,600
May	50,000	20,000	8,400	4,800
June	60,000	21,600	9,000	5,000

Additional details regarding payments, credit sales, machine installation, and dividends are provided.

Required:
Prepare a monthly cash budget for the three months ending June 2022. Show your workings. (20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Budget, Machine Installation, Overheads, Sales Collection
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2022

MI – Mar-Jul 2020 – L1 – SA – Q7 – Budgeting

Calculate the sales collection in Month 4 based on given purchasing and collection pattern.

Question

Month	Amount (N)
1	65,000,000
2	72,000,000
3	60,000,000
4	80,000,000

What is the sales collection in Month 4?

A. N64,000,000
B. N70,400,000
C. N72,000,000
D. N78,793,459
E. N79,200,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Budgeting, Revenue management, Sales Collection
Level: Level 1

Topic: Budgeting
Series: MAR/JULY 2020

Question Tag: Sales Collection

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BMF – Nov 2022 – L1 – SB – Q3 – Basics of Business Finance and Financial Markets

Candidates are required to prepare a monthly cash budget for a three-month period based on the data provided for Homom Nigeria Limited.

MI – Mar-Jul 2020 – L1 – SA – Q7 – Budgeting

Calculate the sales collection in Month 4 based on given purchasing and collection pattern.

BMF – Nov 2022 – L1 – SB – Q3 – Basics of Business Finance and Financial Markets

Candidates are required to prepare a monthly cash budget for a three-month period based on the data provided for Homom Nigeria Limited.

MI – Mar-Jul 2020 – L1 – SA – Q7 – Budgeting

Calculate the sales collection in Month 4 based on given purchasing and collection pattern.

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BMF – Nov 2022 – L1 – SB – Q3 – Basics of Business Finance and Financial Markets

Candidates are required to prepare a monthly cash budget for a three-month period based on the data provided for Homom Nigeria Limited.

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MI – Mar-Jul 2020 – L1 – SA – Q7 – Budgeting

Calculate the sales collection in Month 4 based on given purchasing and collection pattern.

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BMF – Nov 2022 – L1 – SB – Q3 – Basics of Business Finance and Financial Markets

Candidates are required to prepare a monthly cash budget for a three-month period based on the data provided for Homom Nigeria Limited.

You're reporting an error for "BMF – Nov 2022 – L1 – SB – Q3 – Basics of Business Finance and Financial Markets"

MI – Mar-Jul 2020 – L1 – SA – Q7 – Budgeting

Calculate the sales collection in Month 4 based on given purchasing and collection pattern.

You're reporting an error for "MI – Mar-Jul 2020 – L1 – SA – Q7 – Budgeting"

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