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As soon as possible please Brights purchases and installs sky lights. The entity's estimated sales and expenses for the fist 4 months of 2017 are:
As soon as possible please
Brights purchases and installs sky lights. The entity's estimated sales and expenses for the fist 4 months of 2017 are: Month Sales Expenses January $635 $217 February $1038 $217 March $987 $217 April $987 $217 Actual sales for November and December 2016 were $924 and $806 respectively and actual expenses were $217 for each month. All sales are on credit, and the firm estimates that 33% of the accounts receivable will be collected in the month after sale with the other 67% collected the second month following sale. The average selling price for the products sold is $6. The cash balance as at 1 January 2017 is expected to be $1114. The firm pays for 30% of its purchases in the month after purchase and the balance is paid in the second month following purchase. Average gross profit margin is 48%. The firm plans to continue maintaining an end-of-month inventory equal to 24% of the next month's projected cost of sales. Depreciation amounting to $166 per month and wages of $132 are included in the monthly expenses of 217. Other expenses are paid during the month they are incurred. Prepare a monthly schedule of expected cash receipts for the first quarter of 2017 and enter the total cash receipts in the month of February in the answer block belowStep by Step Solution
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