I have a number of questions. I have the answers already, but need to know how to arrived at the answers. Can you show me the calculations? I need these by Tuesday night. Let me know if you can do this. Thanks!
Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January. Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. The cost of goods sold is 65% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 50% 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 $22,500. Monthly depreciation is $19,000. Ignore taxes. 40. Expected cash collections in December are: A. $59,400 B. $140,000 C. $199,400 D. $200,000 c 41. The cost of December merchandise purchases would be: A. $133,250 B. $68,250 C. $130,000 D. $143,000 A 42. December cash disbursements for merchandise purchases would be: A. $136,500 B. $68,250 C. $133,250 D. $130,000 A 43. The difference between cash receipts and cash disbursements for December would be: A. $17,900 B. $22,500 C. $40,400 D. $62,900 C 44. The net income for December would be: A. $40,400 B. $22,500 C. $47,500 D. $28,500 B 45. The cash balance at the end of December would be: A. $116,900 B. $16,000 C. $100,900 D. $56,400 A 46. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A. $82,000 B. $113,400 C. $60,000 D. $54,000 D 47. Accounts payable at the end of December would be: A. $65,000 B. $68,250 C. $130,000 D. $133,250 D 48. Retained earnings at the end of December would be: A. $132,500 B. $155,000 C. $196,500 D. $183,900 D Casper Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: The company wants to maintain monthly ending inventories of Jurislon equal to 10% of the following month's production needs. On July 31, this requirement was not met since only 6,900 kilograms of Jurislon were on hand. The cost of Jurislon is $3.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. 67. The total cost of Jurislon to be purchased in August is: A. $233,625 B. $407,700 C. $214,200 D. $212,925 D
