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Romona Company expects its November sales to be 10% higher than its October sales of $200,000. All sales are on credit and are collected as
Romona Company expects its November sales to be 10% higher than its October sales of $200,000. All sales are on credit and are collected as follows: 35% in the month of the sale and 60% in the following month. Purchases were $140,000 in October and are expected to be $180,000 in November. Purchases are paid 40% in the month of purchase and 60% in the following month. The cash balance on November 1 is $13, 100. The cash balance on November 30 will be A. $54, 100 B. $41,000 C. $27, 900 D. $210, 100
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