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Timpco, a retailer, makes both cash and credit sales ( i . e . , sales on open account ) . Information regarding budgeted sales
Timpco, a retailer, makes both cash and credit sales ie sales on open account Information regarding budgeted sales for the last quarter of the year is as follows:
October November December
Cash sales $ $ $
Credit sales
Total $ $ $
Past experience shows that of credit sales are uncollectible. Of the credit sales that are collectible, are collected in the month of sale; the remaining are collected in the month following the month of sale. Customers are granted a discount for payment within days of billing. Approximately of collectible credit sales take advantage of the cash discount.
Inventory purchases each month are of the cost of the following months projected sales. The gross profit rate for Timpco is approximately All merchandise purchases are made on credit, with paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are available.
Required:
Calculate the budgeted total cash receipts for November and December. Round your final answers to the nearest whole dollar amount.
Calculate budgeted cash disbursements for November and December budgeted total sales for January of the coming year equals $
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