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The company is in the process of preparing a budget for May and has assembled the following data:
Required:
Question 1. Calculate the expected cash collections from customers for May.
Question 2. Calculate the expected cash disbursements for merchandise purchases for May.
Question 3. Prepare a cash budget for May.
Question 4. Prepare a budgeted income statement for May.
Question 5. Prepare a budgeted balance sheet as of May 31.
Determine whether the collection targets are correct. Based on your evaluation, present your recommendations to the company.
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