Question
The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January: $202000; February: $101000 Collections for sales are 60% in
The following information pertains to the January operating budget for Casey Corporation.
Budgeted sales for January: $202000; February: $101000
Collections for sales are 60% in the month of sale and 40% the next month.
Gross margin is 25% of sales. Administrative costs are $14000 each month.
Beginning accounts receivable is $23000. Beginning inventory is $14000.
Beginning accounts payable is $73000. (All from inventory purchases.)
Purchases are paid in full the following month.
Desired ending inventory is 25% of next month's cost of goods sold (COGS).
For January, budgeted cash payments for purchases are ________.
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