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Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of

image text in transcribedimage text in transcribed Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $37,500 and $41,500, respectively. It also expects credit sales of $57,500 and $67,500, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the company's cash budget for the second month? Assume a merchandising company's estimated sales for January, February, and March are $100,000,$120,000, and $110,000, respectively. Its cost of goods sold is always 40% of its sales. The company always maintains ending merchandise inventory equal to 10% of next month's cost of goods sold. What are the required merchandise purchases for January

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