Sales for October,November,and December Are Expected to Be $200,000,$180,000,and $220,000,respectively,for

question 5

Essay

Sales for October,November,and December are expected to be $200,000,$180,000,and $220,000,respectively,for Ripken 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:
$\begin{array}{lrrr}&\underline{\text { October}}&\underline{\text { November}}&\underline{\text { December }}\\\text { Materials used } & \$ 40,000 & \$ 36,000 & \$ 44,000 \\\text { Salaries } & 70,000 & 68,000 & 72,000 \\\text { Maintenance and repairs } & 18,000 & 18,000 & 18,000 \\\text { Depreciation } & 36,000 & 36,000 & 36,000 \\\text { Utilities and other } & 14,000 & 14,000 & 14,000 \\\text { Dividends paid } & 0 & 10,000 & 0\\\text { Payment on bonds } & 8,000 & 8,000 & 8,000\end{array}$ Using the given information,prepare a cash budget for November.

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Having unique or characteristic qualities that distinguish something or someone from others.

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A structure or process that is highly organized, often rigid and hierarchical, resembling a machine in its function.

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Explicit, written guidelines and regulations that govern behavior and processes in organizations and societies.

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A strict, inflexible organizational structure with clearly defined levels of authority and a top-down approach to management.