Assume a merchandising companys estimated sales for January, February, and March are $110,000, $130,000, and...
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Accounting
Assume a merchandising companys estimated sales for January, February, and March are $110,000, $130,000, and $120,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 25% of next months cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?
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