All sales are on credit. Collections are as follows: 22% is collected in the month...
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Accounting
All sales are on credit. Collections are as follows: is collected in the month of the sale, and the remaining is collected in the month following the sale. Merchandise purchases cost $ per unit. For those purchases, is paid in the month of purchase and the other is paid in the month following purchase. The company has a policy to maintain an ending monthly inventory of of the next months unit sales. The May actual inventory level of units is consistent with this policy. Selling and administrative expenses of $ per month are paid in cash. The companys minimum cash balance at monthend is $ Loans are obtained at the end of any month when the preliminary cash balance is below $ Any preliminary cash balance above $ is used to repay loans at monthend. This loan has a monthly interest rate. On May the loan balance is $ and the companys cash balance is $
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