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question information pertaining to yekstop corp 39 s sales revenue is presented belo 4283597

Question

Information pertaining to Yekstop Corp.'s sales revenue is presented below:

Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices.

Budgeted January cash payments for December inventory purchases by Yekstop Corp. are:

$241,500.

$67,995.

$103,500.

$158,655.

$289,440.

May I please receive a step-by-step walkthrough of this problem.

 

November

December

January

Cash sales

$96,000

$125,000

$78,000

Credit sales

288,000

450,000

234,000

Total sales

$384,000

$575,000

$312,000

 

 

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