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Exam CMA-Financial-Planning-Performance-and-Analytics All Questions
Exam CMA-Financial-Planning-Performance-and-Analytics All Questions

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IMA CMA CMA-Financial-Planning-Performance-and-Analytics Question # 9 Topic 1 Discussion

CMA-Financial-Planning-Performance-and-Analytics Exam Topic 1 Question 9 Discussion:
Question #: 9
Topic #: 1

Scully Tools Company is currently completing its master budget for the coming year Immediately before the master budget is approved, it is determined that December sales should be revised upward by S120.000 . Scully purchases merchandise on a just-in-time basis, and remits cash immediately through electronic transfer All sales are on account. 20% of the sales are collected in the month of sale, and 80% in the month following the sale. Scully's gross profit percentage is 30%. What effect will this budget revision have on Scully's pro forma statement of cash flows?


A.

Cash will decrease by $84,000


B.

Cash will decrease by $60,000


C.

Cash will increase by $24,000


D.

Cash will increase by $36,000


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