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Northern Gifts, Inc., is concerned about its cash position at the end of November because of the anticipated inventory buildup during that month to get
Northern Gifts, Inc., is concerned about its cash position at the end of November because of the anticipated inventory buildup during that month to get ready for the holiday season. Selected information about expected November activity is presented as follows: Data Section: Cash balance, November 1 $24,000 Sales $250,000 Gross profit percentage (based on sales) $45% Increase in accounts receivable during month $24,000 Increase in accounts payable during month $51,000 Increase in inventory during month $98,000 Selling expenses total $32,000 per month plus 15% of sales. Depreciation expense of $5,000 per month is included in fixed selling expenses. Check Figure: Projected ending cash balance is $1,00
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