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How do you do this? 0 Sales are budgeted at $29?,000 for November. $317,000 for December, and $217,000 for January. 0 Collections are expected to
How do you do this?
0 Sales are budgeted at $29?,000 for November. $317,000 for December, and $217,000 for January. 0 Collections are expected to be T0% in the month of sale and 30% in the month following the sale. 0 The cost of goods sold is ?5% of sales. I The company desires to have an ending merchandise inventory at the end of each month equal to 80% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $21,800. 0 Monthly depreciation is $24,500. I Ignore taxes. Balance Sheet October 31 Assets Cash 5 28,500 Accounts receivable 80,500 Merchandise inventory 178,200 Property, plant and equipment, net of $624,000 accumulated depreciation 1:011:000 Total assets S 1,298,200 Liabilities and Stockholders' Equity Accounts payable S 243,000 Common stock 747, 000 Retained earnings 308,200 Total liabilities and stockholders' equity 5 1:293:200 Accounts payable at the end of December would beStep by Step Solution
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