Information pertaining to Yekstop Corp.'s sales revenue ispresented below: 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 Management estimates that 4% of creditsales are eventually uncollectible. Of the collectible creditsales, 65% are likely to be collected in the month of sale and theremainder in the month following the month of sale. The companydesires to begin each month with an inventory equal to 75% of thesales projected for the month. All purchases of inventory are onopen account; 30% will be paid in the month of purchase, and theremainder 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 byYekstop Corp. are:
Information pertaining to Yekstop Corp.'s sales revenue ispresented below: 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 Management estimates that 4% of creditsales are eventually uncollectible. Of the collectible creditsales, 65% are likely to be collected in the month of sale and theremainder in the month following the month of sale. The companydesires to begin each month with an inventory equal to 75% of thesales projected for the month. All purchases of inventory are onopen account; 30% will be paid in the month of purchase, and theremainder 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 byYekstop Corp. are:
