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Assume that a company prepared the following sales budget: The following information is also available: - Desired ending inventory is $20,000 plus 70% of the
Assume that a company prepared the following sales budget: The following information is also available: - Desired ending inventory is $20,000 plus 70% of the next month's cost of goods sold. - Cost of goods sold averages 60% of sales. - Purchases are paid 30% in the current month and 70% in the next month. - Budgeted sales each month are 70% credit and 30% cash. - 40% of credit customers pay in the current month, 50% pay in the first month after the sale, and 10% pay in the second month after the sale. What are the expected cash collections from customers for November
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