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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 $308,000
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow. . Sales are budgeted at $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,eee accumulated depreciation Total assets 35,500 86,080 172,480 923,000 $1,216,950 Liabilities and stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders equity S 257,000 758,000 281,980 $1,216,950 Accounts payable at the end of December would be
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