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Use the information for XYZ Corporation which follows to answer the question given below: . Sales are budgeted at $360,000 for November, $400,000 for December,
Use the information for XYZ Corporation which follows to answer the question given below: . Sales are budgeted at $360,000 for November, $400,000 for December, and $380,000 for January. Collections are expected to be 4 month following the sale. 0% in the month of sale and 60% in the . The cost of goods sold is 65% of sales. . The company desires an ending merchandise inventory equal to 50% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. . Selling expenses to be paid in cash are $11,000. Administrative expenses to be paid in cash are $20,000. . Monthly depreciation is $30,000 . Ignore taxes. XYZ Corporation Balance Sheet October 31 Assets: Cash. Merchandise inventory.. $150,000 210,000 117000 568,000 Property, plant and equipment (net of $300,000 accumulated depreciation) $1.045.00
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