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Please include the formulas a long with an explanation. Thank you ! Diltex Farm Supply is located in a small town in the rural west.
Please include the formulas a long with an explanation. Thank you !
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 Jenuary Collections are expected to be 70% in the month ofsale, 27% inthe month following the sale, and 3% uncollectible The cost ofgoods sold is 65% ofsales. .The company desres to have an ending merchandise inventory at the end ofeach month equal to 50% ofthe next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. 1. Expected cash colections in December are: A $59,400 B. $140,000 C. $199,400 D. $200,000 2. December cash disbursements for merchandise purchases would be A. $136,500 B. S68,250 C. $133,250 D. S130,000 receivable balance, net of uncollectible accounts, at the end of December would be A. $82,000 B. $113,400 C: S60,000 D. $$4,000 4. Accounts payable at the end of December would be: A $65,000 B. $68,250 C. $130,000 D. S133.250 Step by Step Solution
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