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The following information is collected for a merchandising company: Budgeted sales (all on credit) for September October, and November $48,000, $54,000, and $46,000, respectively. Cash

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The following information is collected for a merchandising company: Budgeted sales (all on credit) for September October, and November $48,000, $54,000, and $46,000, respectively. Cash collections of sales are expected to be 75% in the month of sale and 23% in the month following the sale. The remainder of the sales is expected to be uncollectible. The cost of goods sold is expected to be 60% of sales. Each month's ending Inventory equals 20% of next month's cost of goods sold. 40% of each month's merchandise purchases are pold in the current month and the remainder is paid in the following month. Monthly seling and administrative expenses that are peld in cash in the month incurred total $5,400. Monthly depreciation expense is $3,000. Dividends of $1,000 to be declared in October and pold in November The expected net operating income for October is: $15,120 $13,200 $12,120 O $22,920 The expected cash disbursements in October are: O $38,688 $30,288 $35.688

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