Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dily Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $290,000

image text in transcribed

Dily Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $290,000 for November, $310,000 for December, and $210.000 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 $21,100 Monthly depreciation is $21,000 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The cash balance at the end of December would be: $ 25,000 77,000 162,400 1,026,000 $ 1,290,400 $239,000 740,000 311,400 $ 1,290,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

8th edition

978-1259997525, 1259997529, 978-1259548185

More Books

Students also viewed these Accounting questions

Question

How can offering quantity discounts increase a producers profits?

Answered: 1 week ago

Question

Explain possible uses for single-case research.

Answered: 1 week ago

Question

Find the inverse, if it exists, for the matrix. -1

Answered: 1 week ago

Question

What are the advantages and disadvantages of ROWE?

Answered: 1 week ago