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Answer the next the questions using the following information Buchanan Home Goods purchases merchandise from suppliers for sale in its re budget for the 3rd

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Answer the next the questions using the following information Buchanan Home Goods purchases merchandise from suppliers for sale in its re budget for the 3rd quarter of the current year. It's Balance Sheet and other data 60 suppliers for sale in its retail store. The company is preparing its and other data about the store's operations are below Assets Cash Accounts Receivable (Net) Merchandise Inventory Property & Equip (Net) Total Assets Balance Sheet as of June 30th Liabilities and Stockholders' Equity 196.000 22.000 Accounts Payable 33,000 480.900 69,300 Common Stock 451,400 1,004,000 Retained Earnings $ 1,128,300 Total Liabilities & Equity $ 1,128,300 July For the upcoming quarter, Sales are budgeted at: 330,000 August $ 300,000 September $ 320,000 Collections are expected to be 85% in the month of sale. 10% in the month following the sale, with so uncollectible. The company recognizes bad debt expenses in the month of sale. Cost of goods sold is 60% of sales. Desired Ending Merchandise Inventory is 35% of the following months' sales needs. 70% of merchandise purchases are paid in the month of purchase, with the remaining 30% paid in the month following the purchase. Other monthly expenses to be paid in cash are $25,000. Monthly Depreciation is $21,000. A dividend of $10,000 will be declared in the month of July for payment to shareholders in the month of August. . Ignore any interest and taxes. 5 Budgeted cash collections in the month of September would be: A. $ 302,000 B. $ 317,000 CS 287,000 D. $ 305,000 E. None of the above 6 Budgeted cash disbursements for the purchases of merchandi ents for the purchases of merchandisinventory in August would be 184,200 B. $ 186,450 C. $ 187,350 D. $ 310,750 E. None of the above 7 Budgeted Retained Earnings at the end of July would be: A. $ 537,400 527,400 520,900 DS 510,900 E. None of the above C

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