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Sales for Furthur Bus Company are shown in the table below. wwwwww Sales November December January February March $9,500 $10,000 $11,000 $12,100 $13,310 All
Sales for Furthur Bus Company are shown in the table below. wwwwww Sales November December January February March $9,500 $10,000 $11,000 $12,100 $13,310 All sales are for credit, with 80% collected the following month and 20% collected during the second month. Purchases of raw materials equals 60% of sales. Purchases are made in the month of the sale, but suppliers are paid in the month following the purchase. Wages are $1,000 per month, rent is $1,500, taxes are $500, and a $1,000 loan payment is due in February. Monthly interest expense is $200. What are the net cash flows in January, February, and March?
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1 January Cash Flows Sales in January 11000 80 of December sales collected in January 80 10000 8000 20 of November sales collected in January 20 9500 ...Get Instant Access to Expert-Tailored Solutions
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