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Hector Company reports the following: July August September Sales $ 25,000 $ 33,000 $ 37,000 Purchases 14,250 18,810 25,000 Payments for purchases are made in
Hector Company reports the following:
July | August | September | |||||||
Sales | $ | 25,000 | $ | 33,000 | $ | 37,000 | |||
Purchases | 14,250 | 18,810 | 25,000 | ||||||
Payments for purchases are made in the month after purchase. Selling expenses are 20% of sales, administrative expenses are 9% of sales, and both are paid in the month of sale. Rent expense of $2,000 is paid monthly. Depreciation expense is $1,500 per month. Prepare a schedule of budgeted cash payments for August and September.
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