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Morgan Company's budgeted Income statement reflects the following amounts: January February March April Sales $120,000 110,000 125,000 13e, eee Purchases Expenses $78,500 $24,500 66,5ee2 4,700
Morgan Company's budgeted Income statement reflects the following amounts: January February March April Sales $120,000 110,000 125,000 13e, eee Purchases Expenses $78,500 $24,500 66,5ee2 4,700 81,75e 27,500 85, eee 29,100 Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Morgan pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1 Cash Accounts receivable Accounts payable $88,000 58, eee 72,eee "Of this balance. $28.000 will be collected in January and the remaining amount will be collected in February The monthly expense figures include $5,000 of depreciation. The expenses are paid in the month incurred. Morgan's expected cash balance at the end of February is: Multiple Choice S92500. $11,815. $94 660. $87500 $89,660
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