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Northern Company has budgeted sales for the upcoming months as follows: April $ 456,000 May $ 468,000 June $ 491,000 July $ 521,000 August $
Northern Company has budgeted sales for the upcoming months as follows:
April | $ | 456,000 |
May | $ | 468,000 |
June | $ | 491,000 |
July | $ | 521,000 |
August | $ | 504,000 |
September | $ | 481,000 |
40% of the sales are credit sales, the remainder are cash sales. Credit sales are collected 45% in the month of sale, 35% in the month following the sale, and 7% in the second month following the sale. |
a. | Compute Northern Company |
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