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ABBOTT, INC Minimum ending cash balance Cost of Goods Sold (as a percentage of sales) Gross margin (as a percentage of sales) 8,000 60% 40%
ABBOTT, INC Minimum ending cash balance Cost of Goods Sold (as a percentage of sales) Gross margin (as a percentage of sales) 8,000 60% 40% Recent and forecast sales March (actual) 60,000 70,000 85,000 90,000 50,000 ay June 30% Desired ending inventories (percentage of next month's cost of goods sold) Purchases paid as follows: In month of purchase In following month 50% 50% Collection on sales: Cash sales Credit sales All payments on credit sales are collected in the month following the sale 20% 80% Variable monthly expenses: Shipping expenses (as a percentage of sales) Other expenses (as a percentage of sales) Fixed monthly expenses 6% Wages and salaries Advertising Depreciation (per quarter) 7,500 6,000 6,000
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