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Ashley Company is a distributor of exercise equipment. The following information is available about the company's operations. The cash balance on December 1 is $40,000.
Ashley Company is a distributor of exercise equipment. The following information is available about the company's operations. The cash balance on December 1 is $40,000. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $65,000 $70,000 $83,000 Sales on account $400,000 $525,000 $600,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following the sale, and 18% collected in the second month following the sale. The remaining 2% is uncollectible. Required: What is the amount of cash that Ashley Company can expect to collect during December
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