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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Definitions:

Random Sample

A random sample is a subset of individuals chosen from a larger set where each individual has an equal probability of being selected.

Statistical Significance

A measure that indicates whether the results of an experiment or study are likely not due to chance, but to a specific factor or intervention.

Chance Variations

Random changes or differences that occur naturally within processes, which can affect outcomes unpredictably.

Causally Related

A connection between two events where one directly affects the outcome or occurrence of the other.