Question
Leslie's Shirt Shop sells tee shirts at soccer tournaments. The shirts sell for $20 each. This year, Leslie expects to sell 500 shirts in May,
Leslie's Shirt Shop sells tee shirts at soccer tournaments. The shirts sell for $20 each. This year, Leslie expects to sell 500 shirts in May, 600 shirts in June, 500 shirts in July, 700 shirts in August, 900 shirts in September, and 800 shirts in October. On average, 30% of her clients purchase on credit. Leslie allows those customers to pay for their purchases the month after they have made their purchase. Leslie's policy is to end each month with an ending inventory equal to 20% of the next month's projected sales. Leslie pays $5 for each tee shirt that she purchases. Leslie's suppliers allow her to pay for her purchases 30 days after the purchase. Leslie's Shirt Shop expects to incur the following expenses for each month of the third quarter of this year:
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