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please do all the parts 7a to 7c or Kazi Preyonty The data bellow regards The Bag House, a store that sells bags Budasted sales
please do all the parts 7a to 7c
or Kazi Preyonty The data bellow regards The Bag House, a store that sells bags Budasted sales (sredit: for January, Febnuary, and March are $420,000, $310,000 and $230,000 Budgeted sollections: 60% in month of sale, 30% in following month, and 10% uncollectable. Costof goods sold: 50% of sales Purchases ofmerchandize 30% in month prot to sale, and 70ns in month of sale Paymentforpurchases 80% in month of purchase and 20% in following month. Selling and administrative costs: $32,500 paid in cash monthly Depreciation of offiss equipmens: $21,500 monthly 7A. What is February's net income (loss) before interest and taxes? A. $68.500 B. $89,000 C. $75,500 D. $70,000 E. None of the above 7B. What is the total cash disbursemest for purchases of merchandize in Febnuary? A. $165,500 B. $139,100 C. $149,750 D. $153,000 E. Nooe of the above 7C. What is the change in the cash account for February? A. Increase of $120,400 B. Decrease of $159,000 C. Increase of $159,000 D. Decrease of $120,400 E. None of the aboveStep by Step Solution
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