Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: . Sales are budgeted at $254,000
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: . Sales are budgeted at $254,000 for November, $294,000 for December, and $221,000 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 80% 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 sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $15,600. Monthly depreciation is $26,500. Ignore taxes. . $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 32,000 82,500 182,880 916,000 $1,213,380 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 250,000 751,000 212,380 $1,213,380 Accounts payable at the end of December would be
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started