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uincy Company has both cash and credit customers. The company expects that 40% of total monthly sales will be collected in cash in the month
uincy Company has both cash and credit customers. The company expects that 40% of total monthly sales will be collected in cash in the month of sale, and the remaining 60% will be collected in the month following the month of sale. The Accounts Receivable balance on January 1 is $97,500, all of which is expected to be collected during January. Projected sales for the first three months of the year are as follows: January February March $190,000 200,000 210,000 Projected manufacturing costs and selling and administrative expenses for the first three months of the year are as follows: January February March Manufacturing Costs Selling & Administrative Expenses $72,000 $110,000 134,000 160,000 70,000 75,000 Manufacturing costs include depreciation, insurance, and property taxes, which represent $18,000 of the estimated monthly manufacturing costs. The annual insurance premium was paid on December 31 of the prior year, and property taxes for the year will be paid in June. Of the remainder of the manufacturing co
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