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All sales at Jordan Company, a wholesaler, are made on credit. Experience has shown that 75% of the accounts receivable are collected in the month

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All sales at Jordan Company, a wholesaler, are made on credit. Experience has shown that 75% of the accounts receivable are collected in the month of the sale, 22% are collected in the month following the sale, and the remaining 3% are uncollectible. Actual sales for March and budgeted sales for the following four months are given below: April (actual sales) 75,000JOD May 100,000 JOD June. 120,000JOD July. 150,000JOD August.. 105,000JOD The company's cost of goods sold is equal to 50% of sales. All purchases of inventory are made on credit. Jordan Company pays of 80% of a month's purchases in the month of purchase, and the other percent in the month following purchase. The company requires that end-of-month inventories be equal to 30% of the cost of goods sold for the next month. Required: a Compute the amount of cash, in total, which the company can expect to collect in June. b. Compute the budgeted Dinar amount of inventory which the company should have on hand at the end of May. c. Compute the amount of inventory that the company should purchase during the months of June and July d. Compute the amount of cash payments that will be made to suppliers during July for purchases of inventory

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