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I don't know why I am struggling but I am completely lost with how to solve this. Thank you in advance! Experience shows that 20%
I don't know why I am struggling but I am completely lost with how to solve this. Thank you in advance!
Experience shows that 20% of customers pay in the month of sale, 70% pay 1 month later, and the rest of paying customers pay 2 months after sale. Three percent of customers never pay. Inventory is purchased 1 month prior to sale, and cost of goods sold equals 70% of sales. Accounts payable are paid 30 days after purchase. Any financing is done through a 12% LOC. The company has $5000 cash on hand on March 1 and would like to retain a cash balance of $5000Step by Step Solution
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