Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer the multiple choice question Dilly Farm Supply is located in a small town in the rural west, Data regarding the store's operations follow Sales
answer the multiple choice question
Dilly Farm Supply is located in a small town in the rural west, Data regarding the store's operations follow Sales are budgeted at $308,000 for November, $328.000 for December, and $228,000 for January Collections are expected to be 65% in the month of sale and 35% 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 of each month equal to 70% of the next month's cost of goods sold Payment for merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $22.900. Monthly depreciation is $30,000. Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 35,500 86,000 172,480 923,00 $1,216,980 $ 257,000 758,000 201.980 31,216,980 The cost of December merchandise purchases would be: The cost of December merchandise purchases would be: Multiple Choice $246,400 $127,680 O $206,400 $262,400 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started