Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please confirm that the 4 questions have been answered correctly if not please provide correct answers The following data relate to the operations of Dillinger

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Please confirm that the 4 questions have been answered correctly if not please provide correct answers

The following data relate to the operations of Dillinger Company, a wholesale distributor of consumer goods: a. Gross margin is 30% of sales. b. Actual and budgeted sales data: c. Sales are 70% for cash and 30% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. d. Each month's ending inventory should equal 20% of the following month's budgeted d. cost of goods sold. e. 25% of a month's inventory purchases is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory. f. Monthly expenses are as follows: salaries and wages, $14,500; rent, $3,800 per month; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $3,000 per month (includes depreciation on new assets). g. Equipment costing $11,000 will be purchased for cash in April. h. The company must maintain a minimum cash balance of $5,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12,2/12, and so forth). Required: Using the above data: 1. Complete the following schedule: 2. Complete the following: 3. Complete the following schedule

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_2

Step: 3

blur-text-image_3

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: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

11th edition

978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139

More Books

Students also viewed these Accounting questions