We have that the january units cost 2400*45=108000$. Also, February's cost is going to be 3700*45=166500$. We have that for January, the ending balance needs to be 70% of the stock for February. Hence, it needs to be 70%*166500=116500$. Hence, we will need to pay for the units 108000$ and also 116500$; Thus, the total money that needs to be invested in January is 224500$. However, we already have 37250$, so the total inflow of money is 187250$. Hence, the correct choice is that on January we need 187300$.
(For February, we need to put in 166500$ and also 51800 need to be available at the end of the month. Thus, the total cost needs to be 218300$. However, 116500$ are already available from January. Hence, the total inflow for February is 101800$.
The total from both months is: 187250+101800=289050$)
Answer:
$31,350
Explanation:
Calculation for Pat's accrual-basis net income
Cash receipts$42,900
Less Cash disbursements(12,800)
Cash basis net income 30,100
Less depreciation expense(1,900)
Add increase in accounts receivable1,200
Add increase in supplies 3,600
Less increase in accrued liabilities(1,650)
Accrual-basis net income$31,350
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