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Graham Potato Company has projected sales of $12.000 in September, $15,000 in October, $22,000 in November, and $18,000 in December. Of the company's sales, 30
Graham Potato Company has projected sales of $12.000 in September, $15,000 in October, $22,000 in November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December Also assume Graham's cash payments for November and December are $18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December Graham Potato Company Cash Receipts Schedule November December September October 18,000 12,600 5,400 6,160 6,300 17,860 12,000 $ 15,000 $ 22000 S Sales Credit sales 15,400 6,600$ 4,200 5,040 15,840$ 8,400 10,500 Cash sales One month after sale Two months after sale Total cash receipts b. Prepare a cash budget beginning loan balance is so.) with borrowing needed or repayments for November and December. (Negative amounts should be indicated by a minus sign. Assume the November Graham Potato Company Cash Budget November December 1:05 AM ^???4x 7/27/2018 O Type here to search
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