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Questions 2-5 pertain to the information below for HomeExpress, Inc. HomeExpress sells home building supplies to contractors in Vermont. Data regarding the store's operation
Questions 2-5 pertain to the information below for HomeExpress, Inc. HomeExpress sells home building supplies to contractors in Vermont. Data regarding the store's operation is as follows: a. Sales budget: March $380,000 April $390,000 b. Collections are expected to be: c. Cost of goods sold is: May $400,000 70% in the month of sale 30% in the month following 65% of sales d. The company desires to have and ending merchandise inventory equal to 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. e. Other monthly expenses to be paid in cash are: $22,000 f. Monthly depreciation is: $20,000 g. Ignore taxes h. HomeExpress is planning to declare dividends on 3/25 $10,000 in the amount (to be payable on 4/5): Budgeted Balance Sheet as of February 28 Assets Cash $ 13,000 Account Receivable $ 78,000 Inventory $ 197,600 Property, plant and equipment $ 1,494,000 Accumulated depreciation $ 502.000 Total assets 1.280,600 Liability and Stockholder's Equity: Account payable $ 231,400 Common Stock $ 780,000 Retained Earnings $ 269.200 $ 1.280.600
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