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Please help me answer this question The following Information is budgeted for McCracken Plumbing Supply Corporation for next quarter. All sales at McCracken are on
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The following Information is budgeted for McCracken Plumbing Supply Corporation for next quarter. All sales at McCracken are on credit Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end. Prepare McCracken's cash budget for May. McCracken expects to have $24,000 of cash on hand at the beginning of MayStep by Step Solution
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