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Chapter 22 P18 Build a Model Chapter 22. Solution to Ch 22 P18 Build a Mo

Chapter 22 P18 Build a Model Chapter 22. Solution to Ch 22 P18 Build a Mo

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Chapter 22. Solution to Ch 22 P18 Build a Model Input Data Collections during month of sale 10% Collections during month after sale 75% Collections during second month after sale 15% Lease payments $9,000 Target cash balance $90,000 General and administrative salaries $27,000 Depreciation charges $36,000 Income tax payments (Sep & Dec) $63,000 Miscellaneous expenses $2,700 New design studio payment $180,000 Cash on hand July 1 $132,000 Minimum cash balance $90,000 Sales, labor, and RM adjustment factor 0% May June July August September October November December Original sales estimates $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 Original labor and raw mat. estimates $90,000 $90,000 $126,000 $882,000 $306,000 $234,000 $162,000 $90,000 Collections and purchases worksheet Sales (gross) $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 Collections During month of sale 36000 54000 72000 36000 36000 9000 During 1st month after sale 135000 $270,000 405000 540000 270000 270000 During 2nd month after sale 27000 $27,000 54000 81000 108000 54000 Total collections $198,000 $351,000 $ 531,000 $ 657,000 $ 414,000 $ 333,000 Purchases Labor and raw materials $ 90,000 $ 90,000 $ 126,000 $ 882,000 $ 306,000 $ 234,000 $ 162,000 $ 90,000 Payments for labor and raw materials $ 90,000 $ 126,000 $ 882,000 $ 306,000 $ 234,000 $ 162,000 Note: When the percent collected during the second month after sale is
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