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Business, 25.08.2020 14:01 monk68

Rainbow, Inc. began operations on January 1 of the current year with a $13,000 cash balance. Forty Five percent of sales are collected in the month of sale; 55% are collected in the month following sale. Similarly, 15% of purchases are paid in the month of purchase, and 85% are paid in the month following purchase. The following data apply to January and February: JanuaryFebruary Sales$45,000 $65,000 Purchases 35,000 50,000 Operating expenses 8,000 10,000 If operating expenses are paid in the month incurred and include monthly depreciation charges of $3,500, determine the change in Rainbow’s cash balance during February.

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Rainbow, Inc. began operations on January 1 of the current year with a $13,000 cash balance. Forty F...
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