PROBLEMS 16 Caribbean Construction Corporation supplies mate

PROBLEMS 16) Caribbean Construction Corporation supplies materials and lease machinery for construction. Data regarding the store\'s operations follow: - Sales are budgeted at $375,000 for November, $280,250 for December, and $298,654 . Collections are expected to be 60% in the month of sale, 30% in the month following . The cost of goods sold is 60% of sales. for January. the sale, and 10% uncollectible. The company desires an ending merchandise inventory equal to 55% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $18,956. Monthly depreciation is $17,500 Ignore taxes .

Solution

Solution a:

Solution b:

Solution c:

Solution d:

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Caribbean Construction Corporation
Schedule of expected cash collections
Particulars	November	December
Accounts receivable - October 31	$74,000.00	$0.00
Collection of cash against sales (60% same month,30% next month):
Cash collection of November Sales	$225,000.00	$112,500.00
Cash collection of December Sales		$168,150.00
Total Expected Cash Collection	$299,000.00	$280,650.00