Answer the questions in the following into Hans This per ater Y ep out the store's operations are below budget for the 3rd quarter of the crew year l and the date 196.000 Assets Cash Accounts Receivable (Net) Merchandise Inventory Pronty Equip (Net) Total Assets Balance Sheets of June 30th Liabilities and Stockholdex Eauit 22.000 Accounts Payable 35.000 73.500 Common Stock 1.004.000 Retained in S 1.134.500 Total Liabilities & Equity 487.100 451 400 1.134.300 S . For the upcoming quarter, Sales are budgeted at: 350.000 August $ 300.000 September 320,000 Collections are expected to be as in the month of sale, 10% in the month following the sale, with 5% 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. $ 287,000 B. $ 302,000 C. $ 317,000 D. $ 307,000 E. None of the above 31 7 Budgeted Retained Earnings at the end of July would be: A $ 517,900 B. 545,400 CS 535,400 DS 527,900 E None of the above