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Use the following information to answer question 5. Note: Each part of the question is independent, meaning that you do not need information from the
Use the following information to answer question 5. Note: Each part of the question is independent, meaning that you do not need information from the previous part(s) to answer them. You do not need to create a full purchase, disbursement, and cash budget to answer the question (although you can if it's easier for you to do so). Sales Wages Rent Depreciation Other August $15,000 $1,500 $450 $130 $140 September $26,000 $1,700 $450 $130 $250 October $23,000 $1,700 $450 $130 November December January February $39,000 $46,000 $21,000 $17,000 $1,900 $1,900 $1,600 - $450 $450 $450 $450 $130 $130 $130 $130 $380 $450 $350 $160 $220 General Data 1. Sales are 20% cash, 80% on credit 2. Of the credit sales, 70% are collected in the month following the month of sale, and 30% in the second month following the sale. 3. Gross profit margin on sales averages 25%, meaning that COGS is 75% of sales. 4. All inventory purchases are paid during the month in which they are made. 5. The only purchases the company makes is for inventory. They purchase enough inventory each month to cover the following month's sales at cost. 6. A $12,000 dividend payment will be made in January Part i: What is the expected cash inflow for November? (total receipts) [ Select] Part ii: What is the total expected cash outflow for inventory in October? [ Select] Part iji: What is the expected total cash outflow for January? [Select ]
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