CMA Study Group

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  • 1.  CASH DISBURESEMENT

    Posted 06-23-2022 04:01 AM
    can some one help understand,because in the cashflow chapters , we add any decrease in assets. and here they subtracted and the same for the liablity.



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    Tayba Al-Mehdar
    Controller
    Khobar
    Saudi Arabia
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  • 2.  RE: CASH DISBURESEMENT

    Posted 30 days ago

    Hello Tayba,

    In this case the requirement is Cash Disbursement (Cash Payments), The gross margin is 40% so the Cost of Goods Sold is 60% From Sales (2,400,000*60%=1,440,000), We have decrease in Inventory that means we received cash not paid so it has to be subtracted and the decrease in AP means we paid our dues so it's added.  (1,440,000+100,000-60,000=1,480,000)



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    Mahmoud Hamdi
    Accountant
    Giza
    Egypt
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