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Sales for October, November, and December Are Expected to Be

question 62

Essay

Sales for October, November, and December are expected to be $200,000, $180,000, and $220,000, respectively, for the Gurumai Company. All sales are on account (terms 2/15, net 30 days) and are collected 50 percent in the month of sale and 50 percent in the following month. One-half of all sales discounts are taken on the average. Materials are purchased one month before being needed, and all purchases and expenses are paid for as incurred. Activities for the quarter are expected to be: ( October November December  Materials used $40,000$36,000$44,000 Sal aries 70,00068,00072,000 Maintenance and repairs 18,00018,00018,000 Depreci ation 36,00036,00036,000 Utilities and other 14,00014,00014,000 Dividends pad 010,0000 Payment on bonds 8,0008,0008,000\begin{array}{lrrr}&(\text { October }&\text {November}&\text { December }\\\text { Materials used } & \$ 40,000 & \$ 36,000 & \$ 44,000 \\\text { Sal aries } & 70,000 & 68,000 & 72,000 \\\text { Maintenance and repairs } & 18,000 & 18,000 & 18,000 \\\text { Depreci ation } & 36,000 & 36,000 & 36,000 \\\text { Utilities and other } & 14,000 & 14,000 & 14,000 \\\text { Dividends pad } & -0- & 10,000 & -0- \\\text { Payment on bonds } & 8,000 & 8,000 & 8,000\end{array} Required:
Using the given information, prepare a cash budget for November.

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Definitions:

Distribution

The way in which data points are spread out or distributed across various values.

Discrete

Refers to a type of quantitative variable that can assume a countable number of distinct values, often representing categories or counts.

Random Variable

A random phenomenon's numerical outcomes manifested in a variable.

Discrete Random

Refers to a type of random variable that can take on a countable number of distinct values, such as whole numbers, but not fractions.

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