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I need help with my reviews Sales are budgeted at $307,000 for November. $327,000 for December, and $227,000 for January. Collections are expected to be
I need help with my reviews
Sales are budgeted at $307,000 for November. $327,000 for December, and $227,000 for January. Collections are expected to be 60% in the month of sale and 40% in the month following the sale. The cost of goods sold is 75% of sales. desires to have an ending merchandise inventory at the end of each month equal to 90% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,800. Monthly depreciation is $29,500. Ignore taxes $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 35,000 85,500 290,400 922,000 $1,332,900 Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets $ 35,000 85,500 290,400 922,000 $1,332,900 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 256,000 757,000 319,900 $1,332,900 Q. What are the expected cash collections for - in December
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