$18,000 $25,000 $32,000 is collected from customers in the following manner: Month of sale 25% - Month following the sale 70% -Uncollectible 5% f purchases are paid for in cash in the month of purchase, and the balance is paid the following month. costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the O. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. much cash will be paid out to suppliers in June? 20,200 2,000 2,600 6,400 $45,000 $50,000 $55,000
$18,000 $25,000 $32,000 is collected from customers in the following manner: Month of sale 25% - Month following the sale 70% -Uncollectible 5% f purchases are paid for in cash in the month of purchase, and the balance is paid the following month. costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the O. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. much cash will be paid out to suppliers in June? 20,200 2,000 2,600 6,400 $45,000 $50,000 $55,000
Chapter7: Budgeting
Section: Chapter Questions
Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...
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