The Oxford COmpany Has budgeted sales revenus as follow.
OCT NOV DEC
- Cash Sales 72,000 204,000 156,000
- Total Sales 192,000 300,000 228,000
Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit, with 60% paid in the month of purchase and 40% in the month following purchase. Budgeted inventory purchases are $260,00 in Octrober, $180,000 in November, and $84,000 in December.Use this inormation to prepare a schedule of expected cash payments for purchases of inventory for the months of November and December only.