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Essay text:
Merchandise costs average $4 per kite.
4) Purchases during any given month are paid in full during the following month.
5) All sales are on credit, payable within 30 days, but experience has show that:
60% of current sales are collected in the current month,
30% in the next month, and
10% in the month thereafter. Bad debts are negligible.
6) Monthly operating expenses are as follows:
Wages and salaries $15,000
Insurance expired 125
Depreciation 250
Miscellaneous 2,500
Rent 250/month + 10% of quarterly sales over 10,000
7) Cash dividends of $1,500 are to be paid quarterly, beginning January 15, and are declared on the fifteenth of the previous month...
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