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{"ops":[{"insert":"Cash budget: Basic Farmers Delight Corporation reported sales of $350,000 in June,\n$380,000 in July, and $390,000 in August. The forecasts for September, October, and\nNovember are $385,000, $418,000, and $429,000, respectively. The initial cash bal-\nance on September 1 is $150,000, and a minimum of $8,000 should be kept. Use the\ngiven information to compile a cash budget for the months of September, October,\nand November.\n\n(1) Farmers Delight predicts that 5% of its sales will never be collected, 30% of its sales will be cash sales, and the remaining 65% will be collected in the following month.\n\n(2) Farmers Delight receives other monthly income of $3,000.\n\n(3) The actual or expected purchases are $150,000, $120,000, and $115,000 for the months of September to November, respectively, and 50% are paid in cash while the remainder is paid in the following month. The purchases for August\nwere $120,000.\n\n(4) Monthly rent is $3,500 chargeable only in October and November.\n"}]}

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