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Blue Wave Company budgets the following unit sales for the next four months: September, 3,400 units; October, 4,900 units; November, 6,300 units; and December, 8,100
Blue Wave Company budgets the following unit sales for the next four months: September, 3,400 units; October, 4,900 units; November, 6,300 units; and December, 8,100 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 1,900 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. ayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding ash payments for loan principal and interest payments) for the first three months of next year. Kayak requires a minimum cash balance of $40,000 at each month-end. The company can bortow money at a monthly interest rate of 18. paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1 . Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
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