Hello,
I do not understand how the value for closing cash was calculated in Q3 and Q4. For example, in Q3 should it not be 20€*4250 (sales Q3) * 1.2 (including VAT) *0.2 (20% as stated in the question) = 20400?
Thank you
In reply to Diogo Dias de Freitas Camilo Alves
Re: Exam spring 23/24 question 8.1
Hello Diogo,
The 20% is only the minimum closing cash. Since you can only do loans, reimbursements and investments in multiples of 1000. In that specific case you're talking about, after accounting for the Opening Cash, Positive Cash Balance, Minimum Closing Cash (the 20 400€ you mentioned) and Payment of loan's interests, you'll see that the company has excess funds of 15 207€. They should do a loan reimbursement, but due to the multiples of 1000, they can only reimburse 15 000€. The remaining 207€ will also go to closing cash.
Good study!
The 20% is only the minimum closing cash. Since you can only do loans, reimbursements and investments in multiples of 1000. In that specific case you're talking about, after accounting for the Opening Cash, Positive Cash Balance, Minimum Closing Cash (the 20 400€ you mentioned) and Payment of loan's interests, you'll see that the company has excess funds of 15 207€. They should do a loan reimbursement, but due to the multiples of 1000, they can only reimburse 15 000€. The remaining 207€ will also go to closing cash.
Good study!