Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. laurie's company has budgeted the following amount

Laurie's company has budgeted the following amounts for sales and purchases in Q4 of FY2021;...

90.2K

Verified Solution

Question

Accounting

Laurie's company has budgeted the following amounts for sales and purchases in Q4 of FY2021; October sales of $70,000 and purchases of $50,000; November sales of $90,000 and purchases of $55,000; and December sales of $120,000 and purchases of $30,000. Sales are collected in the month of the sale and payments for purchases are made in the month following the purchase. Selling expenses are 10% of sales and administrative expenses are 15% of sales. Both of these expenses are paid in the month of sale. Rent expense of $6,000 is paid monthly. Depreciation expense of $3,000 is recognized each month. What is the net amount (cash collections less cash expenditures) of cash collected in November?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students