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Corporation's operational data are below: - Sales are budgeted at $260,000 for November, $414,000 for December, and $210,000 for January. All sales are credit sales.
Corporation's operational data are below:
- Sales are budgeted at $260,000 for November, $414,000 for December, and $210,000 for January. All sales are credit sales.
- Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible.
- The cost of goods sold is 65% of sales.
- The company desires to have an ending merchandise inventory at the end of each month equal to 60% of the ne month's cost of goods sold. Payment for merchandise is made in the month following the purchase (
O) December cash disbursements for merchandise purchases would be:
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