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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Samual Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
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| Ac€?c |
Sales are budgeted at $440,000 for November, $460,000 for December, and $450,000 for January. |
| Ac€?c |
Collections are expected to be 65% in the month of sale, 34% in the month following the sale, and 1% uncollectible. |
| Ac€?c | The cost of goods sold is 80% of sales. |
| Ac€?c |
The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. |
| Ac€?c | Other monthly expenses to be paid in cash are $24,100. |
| Ac€?c | Monthly depreciation is $22,000. |
| Ac€?c | Ignore taxes. |
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The cost of December merchandise purchases would be:
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