calculations need. Caribbean Construction Corporation supplies materials and lea

Question

calculations need.

Caribbean Construction Corporation supplies materials and lease machinery for construction Data regarding the store's operations follow: - Sales are budgeted at $375,000 for November, $280,250 for December, and $298,65 . Collections are expected to be 60% in the month of sale, 30% in the month following . The cost of goods sold is 60% of sales. for January the sale, and 10% uncollectible The company desires an ending merchandise inventory equal to 55% of the cost? goods sold in the following month. Payment for merchandise is made in the month following the purchase. -Other monthly expenses to be paid in cash are $18,956. Monthly depreciation is $17,500. -Ignore taxes.

Explanation / Answer

Solution a:

Solution b:

Solution c:

Solution d:

Solution e:

Schedule of expected cash collections Particulars November December Accounts receivable - October 31 $74,000.00 $0.00 Collection of cash against sales (60% same month,30% next month): Cash collection of November Sales $225,000.00 $112,500.00 Cash collection of December Sales $168,150.00 Total Expected Cash Collection $299,000.00 $280,650.00

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