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The company must maintain a $100,000 cash balance at the end of each month 25% of credit sales are collected in the month of sale.
The company must maintain a $100,000 cash balance at the end of each month 25% of credit sales are collected in the month of sale. The credit sales balance is collected one month after the month of sale for each month The company buys 60% of next month sales and these purchases are paid for in the following month. The April's sale is expected to be $900,000
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