Ivanhoe Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: Sales
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Ivanhoe Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses January $347,000 119,000 84,000 59,000 75,000 February $396,000 111,000 113,000 75,000 81,000 All sales are on account. Ivanhoe expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2022, $201.000; December 2022, $277,000
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