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Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow. - Sales are budgeted at $281,000
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow. - Sales are budgeted at $281,000 for November, $321,000 for December, and $212,000 for January - Collections are expected to be 75% in the month of sale and 25% 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 90% of the next month's cost of goods sald Paymient for merchionidse is made in the month following the purchase. - Other monthly expenses to be paid in cash are $20,100. - Monthly depreciation is $22,000. - Ignore taxes
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