The Houdini Magic Shoppe has forecast its sales and purchases for the last 4 months...
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Accounting
The Houdini Magic Shoppe has forecast its sales and purchases for the last 4 months of 2020. Sales are as follows (September to December): 2000, 1100, 2400, 2800 Purchases are as follows (September to December): 1500, 1700, 2600, 1900 Sixty percent of sales are on credit while the rest are cash sales. On the basis of past experience, 40% of the accounts receivable are collected the month after the sale and 60% are collected 2 months after the sale. Purchases are paid the month following the purchase. The firm has a cash balance of $5,000 on hand as at October 1, and has a minimum required cash balance of $4,000. Enter the following information: Credit Sales for November? Cash Inflow for December? Cash Outifow for November? Net Cash Flow for December? Ending Cash Balance for November
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