Profit Planning 116 - 60 in the month of sale Payment for...

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116. Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $390,000 for November, $360,000 for December, and $340,000 for January. Collections are expected to be 85% in the month of sale, 10% in the month following the sale, and 5% uncollectible. The cost of goods sold is 80% of sales. The company purchases 40% of its merchandise in the month prior to the month of sale and
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Unformatted text preview: 60% in the month of sale. Payment for merchandise is made in the month following purchase. • The November beginning balance in the accounts receivable account is $77,000. • The November beginning balance in the accounts payable account is $320,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December....
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This note was uploaded on 11/29/2010 for the course PSY 108 taught by Professor Revlin during the Spring '09 term at University of Santo Tomas.

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