Middlefield Company's budgeted income statement reflects the following amounts: 5 January February March April Sales...
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Middlefield Company's budgeted income statement reflects the following amounts: 5 January February March April Sales $111,000 101,000 116,000 121,000 Purchases $69,000 57,000 72,250 75,500 Expenses $23, 100 23,300 26,100 27,700 00:32:29 Sales are collected 50% in the month of sale, 25% in the month following sale, and 24% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Middlefield pays for all purchases in the month following purchase and takes advantage of a 2% discount. The following balances are as of January Cash Accounts receivable Accounts payable $79,000 49,000 63,000 of this balance, $24.500 will be collected in January and the remaining amount will be collected in February The monthly expense figures include $4100 of depreciation. The expenses are paid in the month incurred Morgan's budgeted cash receipts in February are: 001 Multiple Choke $102,750 5102.390 $82,250 $1840 $78.250
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