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the treasures of Calico Dreams Company has accumulated the following budget information for the first two months of the coming fiscal year April $520,000 Sales
the treasures of Calico Dreams Company has accumulated the following budget information for the first two months of the coming fiscal year April $520,000 Sales Monolacturing costs Selling and administrative expenses Capital additions March $450,000 290,000 41400 250.000 350,000 16,400 The company expects to sell about 35% of merchandise for cash of sales on sccount, are collected in full in the month of the sale, and the remainder in the month following the sale One fourth of the manufacturing costs are paid in the month in which they are incurred, and the other three fourths in the following mot Depreciation in and property taxes represent 16.400 of the monthly selling and administrative expenses Insurance is paid in February, and property taxes are paid yearly in September. A $40,000 installment on income taxes is to be paid in April of the remainder of the seling and administrative expenses, one-half are to be paid in the mouth in which they were and the balance in the following month. Capital addition of $250,000 are paid in March
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