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Essay Details:
Essay text:
The following are actual and forecasted sales figures:
Table 1
Actual
November $120,000
December 140,000
Forecast
January $190,000
February 210,000
March 230,000
April $230,000
Of Juan’s sales, 30 percent are for cash and the remaining 70 percent are on credit. Of credit sales, 40 percent are paid in the month after sale and 60 percent are paid in the second month after the sale. Materials cost 20 percent of sales and are paid for in cash. Labor expense is 50 percent of sales and it is paid in the month of sales. Selling and administrative expense is 5 percent of sales and is paid in the month of sale...
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