Kelly's

the file name in the lowel Chapter 6 Case Problem1: KELLY'S BOUTIQUE Kelly's Boutique of $200,000 in special equipment. One alternative is to local bank for 10 years at 12 percent per annum. is contemplating several means of financing their a The bank has asked them to produce a 1-year cash budget broken down by months (January through Decem- ber). Sales of $40,000 are expected in the first month, with each month there. after increasing 2 percent. Purchases are based on an expected cost of sales f percent and a required ending inventory of 70 percent of next month's c of sales. Beginning inventory was $11,000. Sales for January next year are expected to be $50,000. Sales in the previous November and December were $29,000 and $28,000, respectively. Expenses include advertising expense of $900, depreciation expense of $800, interest expense of $1,000, payroll expense of $8,000, supplies expense of $500, and utilities expense of $600 per month throughout the year. All expenses except depreciation are paid in the month during which they are incurred. Collections in the month of sale are expected to the file name in the lowel Chapter 6 Case Problem1: KELLY'S BOUTIQUE Kelly's Boutique of $200,000 in special equipment. One alternative is to local bank for 10 years at 12 percent per annum. is contemplating several means of financing their a The bank has asked them to produce a 1-year cash budget broken down by months (January through Decem- ber). Sales of $40,000 are expected in the first month, with each month there. after increasing 2 percent. Purchases are based on an expected cost of sales f percent and a required ending inventory of 70 percent of next month's c of sales. Beginning inventory was $11,000. Sales for January next year are expected to be $50,000. Sales in the previous November and December were $29,000 and $28,000, respectively. Expenses include advertising expense of $900, depreciation expense of $800, interest expense of $1,000, payroll expense of $8,000, supplies expense of $500, and utilities expense of $600 per month throughout the year. All expenses except depreciation are paid in the month during which they are incurred. Collections in the month of sale are expected to