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Assume PDC's projected sales in September and October are: September October $165.000 $180.000 Also assume that the following changes happen for the months of August
Assume PDC's projected sales in September and October are:
September | October | ||||
$165.000 | $180.000 | ||||
Also assume that the following changes happen for the months of August and September: - As the closing inventory for August and September, the company keeps 90% of the goods which it estimates will be sold during the next period, plus $45,000 extra worth of goods ready to be sold as an inventory cushion. (in the previous months this was 80% plus $46,000) - for the purchases made in August and September, 55% should be paid in cash and the other 45% will be paid a month later. (in the previous months this was 50-50) - The other expenses mentioned are going to be the same as the solutions provided to you for the months of August and September, and the ANNUAL interest expense is assumed to be 18% (in case you need it). - Other assumptions such as cash collection, etc., stay the same as well. You dont need to present anything further than the data required for the months of August and September (two columns for each table), but its fine if you prefer to show the previous months anyway. |
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