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 Cash budget: Advanced  The Green PLC has projected following unit sales for January 2019 to August 2019. The sales of Green PLC are 30% in cash and the remainder is on a credit for 1 month. It also expects cash receipts from its subsidiaries
worth £40,000 in March, £26,000 in April, and £27,000 in June.
The firm pays 20% in cash for all its purchases. The remaining 40% is paid in
the following month and the last 40% is paid 2 months later.
Month Sales Purchases
January 600,000 400,000
February 500,000 350,000
March 600,000 450,000
April 500,000 475,000
May 700,000 300,000
June 800,000 450,000
July 750,000 300,000
August 800,000 350,000
CHAPTER 4   Long- and Short-Term Financial Planning 227
Wages and salaries amount to 25% of the sales in the preceding month. They
also need to pay rent of £15,000 every month. The payment for a new machinery
will be due in March for £45,000 and will be paid in cash. They have to pay interim
tax of £45,000 in May.
The firm also expects to pay dividend of £26,000 in March and receive a cash
subsidy of £37,000 from government in June.
a. Assuming that the firm has a cash balance of £32,000 at the beginning of January,
estimate the end-of-month closing cash balances for each month, March to August.
b. The directors decide that the cash balance should be maintained at £20,000 at
any given point of time. Determine the required total financing or excess cash
balance for each month, March to August.
c. Do you think that Green PLC will need an overdraft facility for the period from
March to August? What overdraft limit should they ask for while requesting a line
of credit from banks?

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Read this text. This is a conclusion to a personal narrative essay. Your quiz questions will come from this text.

When I faced my biggest challenge, I didn't know how to react. Every obstacle taught me something valuable about myself. As I dealt with setbacks, I learned the power of perseverance. While I struggled, I discovered an inner strength I never knew existed. I realized that challenges don't define me; my response does. Each hurdle I overcome builds my resilience a little more. Even when it feels tough, I believed in my ability to endure. While facing adversity, I learned to adapt and find solutions. Resilience is not something I developed overnight; it takes time. I know that no matter what life throws at me, I can rise above it. Resilience isn't just a word; it's a journey. Through challenges and triumphs, I've learned that my actions during tough times matter most. Each step forward, no matter how small, shapes the person I am becoming. I carry the lessons of the past with me, strengthening my resolve for the future. It's about facing the storms with a steadfast spirit and emerging even stronger on the other side.

Read the following sentences about resilience carefully. Choose the correct verb form from the multiple-choice options for each sentence.

Question 1

When I ______ my biggest challenge, I didn't know how to react.

Group of answer choices

facing

face

faced

faces

question 2

Every obstacle ______ me something valuable about myself.

Group of answer choices

teaches

teaching

teach

taught

Question 3

As I ______ with setbacks, I learned the power of perseverance.

Group of answer choices

deals

am dealing

deal

dealt

Question 4

While I ______, I discovered an inner strength I never knew existed.

Group of answer choices

struggling

struggled

am struggling

have been struggling

Question 5

I realized that challenges ______ define me; my response does.

Group of answer choices

haven’t

don't

not

aren't

Question 6

Each hurdle I ______ builds my resilience a little more.

Group of answer choices

overcoming

overcame

overcomes

overcome

question 7

Even when it feels tough, I ______ in my ability to endure.

Group of answer choices

was believing

believe

had believed

believed

Question 8

While facing adversity, I ______ to adapt and find solutions.

Group of answer choices

learned

am learning

had learned

learn

Question 9

Resilience ______ not something I developed overnight; it takes time.

Group of answer choices

is

was

will be

has been

Question 10

I know that no matter what life ______ at me, I can rise above it.

Group of answer choices

throw

throws

was throwing

threw

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Karlow Corporation owns 60 percent of Draw Company’s votingshares. During 20X3, Karlow produced 27,000 computer desks at acost of $86 each and sold 12,000 of them to Draw for $98 each. Drawsold 8,000 of the desks to unaffiliated companies for $142 eachprior to December 31, 20X3, and sold the remainder in early 20X4for $152 each. Both companies use perpetual inventory systems.

a. What amounts of cost of goods sold did Karlow and Draw recordin 20X3?

b. What amount of cost of goods sold must be reported in theconsolidated income statement for 20X3? (Do not round intermediatecalculations.)

c. A worksheet with consolidation entry or entriesis needed in preparing consolidated financial statements atDecember 31, 20X3, relating to the intercorporate sale ofinventory. (If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Do notround intermediate calculations.)

Entry 1- Record the consolidation entry for the intercorporatesale of inventory.

d. A worksheet with consolidation entry or entries is needed inpreparing consolidated financial statements at December 31, 20X4,relating to the intercorporate sale of inventory. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field. Do not round intermediatecalculations.)

Entry 1- Record the consolidation entry for the intercorporatesale of inventory.

e. A worksheet with consolidation entry or entries is needed inpreparing consolidated financial statements at December 31, 20X4,relating to the intercorporate sale of inventory if the sales wereupstream. Assume that Draw produced the computer desks at a cost of$86 each and sold 12,000 desks to Karlow for $98 each in 20X3, withKarlow selling 8,000 desks to unaffiliated companies in 20X3 andthe remaining 4,000 in 20X4. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field. Do not round intermediate calculations.)

Entry 1- Record the consolidation entry for the intercorporatesale of inventory.

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