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Daly Farm Supply is located in a small town in the rural west Data regarding the store's operations follow Sales are budgeted at $248,000 for
Daly Farm Supply is located in a small town in the rural west Data regarding the store's operations follow Sales are budgeted at $248,000 for November, $268.000 for December, and $220,000 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 75% 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 marchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $17.500 Monthly depreciation is $20,000 Ignore taxes Balance Sheet October 31 Assets ) Cash Accounts receivable Merchandise inventory Property.plant and equipment, net of 5624.000 accumulated depreciation Total assets 20.000 79,500 130,200 976,000 1.205.700 $ 5 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total abilities and stockholders equity 244,000 745,000 216,700 1,205,700 Retained earnings at the end of December would be: Retained earnings at the end of December would be: Multiple Choice O $270,700 $274,700 $275,700 $267.700
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