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More info In any given month, 20% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates
More info In any given month, 20% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected. Assume that the total cost of direct materials purchases in December was $570,000. The company pays 55% of its direct materials purchases in the month of purchase, and pays the remaining 45% in the month after purchase. Data table More info In any given month, 20% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected. Assume that the total cost of direct materials purchases in December was $570,000. The company pays 55% of its direct materials purchases in the month of purchase, and pays the remaining 45% in the month after purchase. Data table
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