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Morgan Company's budgeted income statement reflects the following amounts: January February March April Sales $120,000 110,000 125,000 130,000 Purchases Expenses $78,300 $24, 300 66,300 24,500
Morgan Company's budgeted income statement reflects the following amounts: January February March April Sales $120,000 110,000 125,000 130,000 Purchases Expenses $78,300 $24, 300 66,300 24,500 81,550 27,300 84,800 28.900 646 Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second month following sale. One percento sales is uncollecuble and expensed at the end of the year Morgan pays for all purchases in the month following purchase and take advantage of a 3% discount. The following balances are as of January 1 Cash $80,000 Accounts receivable 58,000 Accounts payable 72,000 of this balance 535000 will be collected in January and the remaining amount will be collected in February 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 $88,000 Accounts receivable' 58.000 Accounts payable 72,000 of this balance, $35,000 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
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