6. Consider the following financial statement information for the Fitzroy Island Ferry Company: BEGINNING ENDING Inventory 7203 9041 Accounts receivable 3069 3995 Accounts payable 3617 4599 Revenue 95 982 Cost of sales 59 814 Assume all sales are on credit. Calculate the operating and cash cycles. How do you interpret your answer? 10. The following is the sales budget for Humpty Doo Quarry Ltd for the first quarter of 2020: Sales budget JANUARY $168 000 FEBRUARY $186 000 MARCH $199 000 Credit sales are collected as follows: 65% in the month of the sale 20% in the month after the sale 15% in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $107 000 ($78 100 of which was uncollected December sales).

a. Compute the sales for November.

b. Compute the sales for December.

c. Compute the cash collections from sales for each month from January to March.

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The following is the sales budget for Humpty Doo Quarry Ltd for the first quarter of 2020:

Sales budget JANUARY $168 000

FEBRUARY $186 000

MARCH $199 000

Credit sales are collected as follows:

65% in the month of the sale

20% in the month after the sale

15% in the second month after the sale.

The accounts receivable balance at the end of the previous quarter was $107 000 ($78 100 of which was uncollected December sales).

a. Compute the sales for November.

b. Compute the sales for December.

c. Compute the cash collections from sales for each month from January to March.