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Question - Avenger's Inc. began operations on January 1 of the current year with a $25,000 cash balance. 40% of sales are collected in the month of sale; 60% are collected in the month following sale. Similarly, 45% of purchases are paid in the month of purchase, and 55% are paid in the month following purchase. The following data apply to January- Sales $75000, purchases $60000 and operating expenses- $9000 and February - Sales $ 80000, purchases $65000 and operating expenses - $18000. If operating expenses are paid in the month incurred and include monthly depreciation charges of $5000, determine the change in Avenger's cash balance during January month and February month separately and the cash balance at the end of January and February respectively.
She incurs $13,400 in fixed costs each year. How many baskets will Karen have to sell this year if she wants to earn $35,000 in operating income
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