Lulu’s Lemons Ltd. sells vehicles. The company is planning its cash needs for the month of January, 2015. In the past, Lulu’s has had to borrow money during the post-Christmas season to offset a significant decline in sales. The following information has been assembled to assist in preparing a cash flow forecast for January.
Cost of goods sold 350,000
Gross profit 150,000
Variable selling expenses $25,000
Fixed administrative expenses 30,000 55,000
Forecast net operating income $95,000
Prepare a cash flow forecast for Lulu’s for January 2015. Include appropriate supporting schedules.
The question belongs to Accounting and it discusses about preparation of cash flow forecast for a company.
Total Word Count 82Download Full Solution
If you are here for the first time, you can request for a discount coupon, which can knock off upto 20% of the quoted price on any service.