It is November 1 of Year 1. Sales for Robert Company for November and December of Year 1 and January of Year 2 are forecasted to be as follows: November, 400,000; December 600,000; January, 200,000 If you could explain this step by step it would help me understand how to do these greatly! thank you 🙂 On average, cost of goods sold is 70% of sales. During this period, Robert Company expects inventory levels to remain constant. This means that inventory purchases are expected to equal the amount of cost of goods sold. 100% of purchases are on credit. Of the credit purchases, 5% are paid during the month of the purchase, 65% in the month following the purchase, and 30% in the second month following the purchase. Sales for September and October of Year 1 were 100,000 and 150,000, respectively. What is the amount of payments made in cash for November purchases?
