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Question - Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 12,000 parts in stock, although sales for June are estimated to total 11,400 parts. Total sales of parts are expected to be 13,000 in July and 11,200 in August.
Parts are purchased at a wholesale price of $10. The supplier has a financing arrangement by which Lakeside Components pays 50 percent of the purchase price in the month when the parts are delivered and 50 percent in the following month. Lakeside purchased 15,000 parts in May.
Required - Estimate the cash required to make purchases in June and July.
q. the accounting staff of wyoming outfitters has assembled the subsequent information for the year ended 31st december
This question is from Essentials of Corporate Finance 8th Edtion. Please don't copy & paste answers that have previously been posted for the 7th edition as the figures have changed.
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