The LeGrange Corporation had the following budgeted sales for the first half of the current year $ 70,000 $170,000 $ 75,e00 $190,88 $ 32,e00 $158,68 anuary February March April May June 27,000 $112,000 $ 37,000 $228,e00 $100,e00 $68,800 month. To thes end, the following information has been assembied The company s in the process of preparing a cash budget and must determine the expected cash collections by Colections on saleS 50% in month of sale 35% r, month folowing sale 15% in second month following sale November current year was 565,000 of which $52,000 represents uncollected December sales and $13,000 represents uncollected The accounts recevable balance on January 1 of the sales he total cash collectea during January by LaGrange Corporanon would be Mutiple Cholce $218,000 $104,000 $281,000 $204.400 Dily Farm Supply is located in a small town in the rural west Data regarding the store's operatsons follow Sales are budgeted at $254,000 for November, $294,000 for December, and $221000 for January collections are expected to be 60% In the month of sale and 40% In the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end ofeach month equal to 90% or the next months cost or goods sod Payment the month following the purchase . for merchandise s mode in . 010 Monthly depreciation is $26,500 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,e00 accumulated depreciation Total assets $32,06e 82, 5e8 182,888 916,000 $1,213,380 Liabilities and Stockholders Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders" equity 258,888 751,000 212,380 1,213, 380 Accounts oavable at the end of December would be Accounts payable at the end of December would be: Multiple Choice $159,120 $23.520 $182640 $235.200 Difly Farm Supply loceted in a small town in the rural west. Data regarding the store's operations follow Sales are badgeted at $254,000 for November $294,000 for December and $221000 for January Collections are expected to be 60% in the month of sale and 40% r, the month follovving the sale The cost ofgoods sold he company desires to have an ending merchandise mventory ar the end of each month equal to 90% of the next moner's cost of goods sold. Payment for merchandice is made in the month following the purchase 80% of sales . Other monthly expenses to be paid in cash are $15,600 Monthly depreciation Is $26,500 Ignore taxes Balance Sheet October 31 Assets Cash Accounts recelvable merchandise Inventory Property, plant and equipment, net of $624,e00 accumulated depreciation Total assets s 32,000 2,500 82,880 916,000 $1,213,388 Liabilities and Stockholders Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $250,000 751,000 212 30 $1,213,388 Retalned earnings at the end of December would be: Multiple Cholce $237,780 $212.380 $221180 $254,380
