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Sales are budgeted at $440,000 for November, $420,000 for December, and $410,000 for January. Collections are expected to be 65% in the month of sale
Sales are budgeted at $440,000 for November, $420,000 for December, and $410,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 70% 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 $25,000. Monthly depreciation is $16,000. Balance Sheet October 31 Assets Cash $ 21,000 Accounts receivable 71.000 Merchandise inventory 246,400 Property, plant, and equipment (net of $573,000 accumulated depreciation) 1.095.000 Total assets $1.433.400 Liabilities and stockholders' equity Accounts payable $ 255,000 Common stock 821,000 Retained earnings 357.400 Total liabilities and stockholders' equity $1.433.400 Calculate the following amounts for the balance sheet at November 30: Cash Accounts receivable Inventory Accounts payable Retained earnings
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