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Author Question: The following information pertains to the January operating budget for Casey Corporation. Budgeted ... (Read 99 times)

daltonest1984

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The following information pertains to the January operating budget for Casey Corporation.

Budgeted sales for January $201,000 and February $101,000.
Collections for sales are 40% in the month of sale and 60% the next month.
Gross margin is 25% of sales.
Administrative costs are $13,000 each month.
Beginning accounts receivable is $25,000.
Beginning inventory is $17,000.
Beginning accounts payable is $73,000. (All from inventory purchases.)
Purchases are paid in full the following month.
Desired ending inventory is 25% of next month's cost of goods sold (COGS).

For January, budgeted cash collections are ________.
◦ $201,000
◦ $105,400
◦ $80,400
◦ $25,000


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Marked as best answer by daltonest1984 on Mar 6, 2021

Fayaz00962

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daltonest1984

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Reply 2 on: Mar 6, 2021
Wow, this really help


coreycathey

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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