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Show supporting computation for each question. The following information was available from the Shirlee Corporation's books: 20x6 S Purchases June July August September 42,000 48,000
Show supporting computation for each question.
The following information was available from the Shirlee Corporation's books: 20x6 S Purchases June July August September 42,000 48,000 36,000 50,000 Sales for June, $72,000, July, $66,000, August, $60,000 and for September, $60,000. Collections from customers are normally 80% in the month of sale, 10% in the month following the sale, and 10% in the second month following the sale. Purchases for October are budgeted at $60,000, while sales for October are forecasted at $66,000. Purchases are paid for 50% in the month of purchase and 50% in the month following the purchase. Cash disbursements for expenses are expected to be $15,000 for the month of October. Shirlee's cash balance at October I was $22,000. Expected cash disbursements during October Expected cash balance at October 31 Step by Step Solution
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