ABC Enterprises is a well-established trading firm specialised in the distribution and sale of a diverse range of products, with a commitment to…

ABC Enterprises is a well-established trading firm specialised in the distribution and sale of a diverse range of products, with a commitment to deliver superior quality to its customers. Following informations are provided by ABC Enterprises: (a) The company is engaged in both cash and credit sales, with credit sales being twice of cash sales. Cash sales are eligible for 3% discount. (b) 60% of credit sales are collected within the same month of sale. The remaining 40% is collected in the following month. All receivables are expected to be fully recovered, with no bad debts anticipated. (c) The company employs a structured pricing policy, ensuring that the selling price includes a 20% profit margin on the selling price. (d) Goods are purchased one month before the month in which these are to be sold. (e) The company procures goods through a combination of cash and credit, with cash purchases comprising 40% of the total purchases. Half of the credit purchases are paid within the same month of purchase, while the remaining 50% is settled in the subsequent month. (f) The fourth installment of advance tax, amounting to 50,000, is due for payment by 15th March, 2025. (g) The opening cash in hand as on 1st February, 2025 stands at 60,000. The projected sales figures are as follows: Month Sales (₹) January, 2025 9,00,000 February, 2025 7,50,000 March, 2025 8,25,000 April, 2025 6,75,000 May, 2025 6,00,000 On the basis of above Case Scenario, you are required to answer the following MCQs: