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Question Five (7 Marks) All sales at McCracken are on credit. Forty percent aiv ... uncollectible. Merchananse purchases the month following the sale, and the
Question Five (7 Marks) All sales at McCracken are on credit. Forty percent aiv ... uncollectible. Merchananse purchases the month following the sale, and the remaining 2% are uncollectible. Merchananse 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. McCracken's cash budget for the month of May. Use good form. . whe hand at the beginning of May
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