Business
Business, 18.11.2019 21:31, ethansellenburg

Caprice corporation is a wholesaler of industrial goods. data regarding the store's operations follow: sales are budgeted at $240,000 for november, $250,000 for december, and $230,000 for january. collections are expected to be 45% in the month of sale, 52% in the month following the sale, and 3% uncollectible. the cost of goods sold is 75% of sales. the company desires an ending merchandise inventory equal to 25% of the cost of goods sold in the following month. payment for merchandise is made in the month following the purchase. the november beginning balance in the accounts receivable account is $59,000. the november beginning balance in the accounts payable account is $246,000. required: a. prepare a schedule of expected cash collections for november and december.

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