Question
PLEASE ANSWER IN THE FORM OF THE PICTURE FORMAT, NEED THE ANSWER TO THE SECOND HALF OF THE PICTURE UNDER CALCULATE PAYMENTS MADE FOR INVENTORY
PLEASE ANSWER IN THE FORM OF THE PICTURE FORMAT, NEED THE ANSWER TO THE SECOND HALF OF THE PICTURE UNDER "CALCULATE PAYMENTS MADE FOR INVENTORY" ................ THANK YOU!
Hardy Companys cost of goods sold is consistently 60% of sales. The company plans to carry ending merchandise inventory for each month equal to 20% of the next months budgeted cost of good sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are: August (actual), $325,000; September (actual), $320,000; October (estimated), $250,000; November (estimated), $310,000. Use this information to determine Octobers expected cash payments for purchases.
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