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Please help asap! Thank you. Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: - Sales are budgeted at $220,000
Please help asap! Thank you.
Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: - Sales are budgeted at $220,000 for November, $230,000 for December, and $210,000 for January. - Collections are expected to be 55% in the month of sale and 45% in the month following the sale. - The cost of goods sold is 70% of sales. - The company desires an ending merchandise inventory equal to 35% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. - The November beginning balance in the accounts receivable account is $57,000. - The November beginning balance in the accounts payable account is $244,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and DecemberStep by Step Solution
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