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We really need to get this new material-handing equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securitles, but if necessary we can get a short-term loan down at MetroBank." This statement by Beth Davies-Lowry, president of Intercoastal Electronics Company, concluded a meeting she had called with the firm's top management. Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firm's main product lines are small kitchen appliances and power tools. Marcia Polosky, Intercoastal's General Manager of Marketing, has recently completed a sales forecast. She belleves the company's sales during the first quarter of 201 will increase by 10 percent each month over the previous month's sales. Then Polosky expects sales to remain constant for several months, Intercoastal's projected baiance sheet as of December 31,200, is as follows: Joaquin Rafael, the assistant controller, is now preparing a monthly budget for the first quarter of 201, In the process, the following information has been accumulated: 1. Projected sales for December of 200 are $400,000. Credit sales typically are 80 percent of total sales. Intercoastal's credit experience indicates that 10 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month. 1. Soles budget

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