Question
Gilbert Industries provides the following information August sales were $160,000 and are expected to be $190,000 in September. All sales are on credit and are
Gilbert Industries provides the following information
August sales were $160,000 and are expected to be $190,000 in September. All sales are on credit and are collected as follows: 40% in the month of the sale and 60% in the following month.
Manufacturing costs were $110,000 in August and are expected to be $130,000 in September. Payments of manufacturing costs are as follows: 30% in the month of production and 70% in the following month.
The beginning cash balance on September 1 is $9,500.
If selling and administrative disbursements for September are $40,000, what is Gilbert Industries ending cash balance on September 30th?
Neatly show and label all of your work. All work must be shown to earn credit.
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