Question
Bio Tronix Labs reports the following purchase information for the most recent reporting period: April May June Purchases $325,000 $400,000 $475,000 April was the first
Bio Tronix Labs reports the following purchase information for the most recent reporting period:
| April | May | June | |
| Purchases | $325,000 | $400,000 | $475,000 |
April was the first month of operations for BioTronix Labs. BioTronix makes cash payments of 35 percent of its purchases in the month of the purchase and 65 percent the following month. There are no bad debts.
Compute the company’s cash payments for June.
The following data pertain to Marseilles Labs:
| Sales | |
| Sales | $1,120,000 |
| Cost of Sales | $784,000 |
| Inventory | $110,000 |
| Accounts receivable | $73,000 |
| Accounts payable | $41,000. |
Compute the additional working capital period for Marseilles Labs. Assume a 365 day year for calculations.
Step by Step Solution
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Solution To compute the cash payments for June we need to use the payment schedule provided 35 of pu...
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Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
15th edition
1337272124, 978-1337515504, 1337515507, 978-1337272155, 978-1337272124
