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XYZ Furniture Co. forecasts credit sales of $165.000 and $162,000 in December and January, respectively, XYZ's typical collection pattern is 30% collected in the month
XYZ Furniture Co. forecasts credit sales of $165.000 and $162,000 in December and January, respectively, XYZ's typical collection pattern is 30% collected in the month of purchase and 70% in the following month XYZ purchases all materials on credit. Purchases are expected to be $64,000 in December and $74,000 in January 50% of purchases are paid for in the current month, with the remaining 50% in the following month. In addition, paid labor costs are budgeted as $21.000 in both December and January. Other expenses are paid in cash the month incurred. Monthly operating expenses are $12.000 which include $3,000 of depreciation expense. If XYZ's starts January with $47.000 in cash what will ending cash be on January 313 O $114.100 $105.000 $10.00 $112.100
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