Use the following to answer Q$73$ to Q$81$:

Dilbert Farm Supply is located in a small town in the rural west. Data regarding the

store's operations follow $($Ignore taxes$)$:

$$ Sales are budgeted at $$260,000$ for November, $$230,000$ for December, and

$$210,000$ for January.

$$ Collections are expected to be $80\%$ in the month of sale, $19\%$ in the month

following the sale, and $1\%$ uncollectible.

$$ The cost of goods sold is $65\%$ of sales.

$$ The company purchases $60\%$ of its merchandise in the month prior to the month

of sale and $40\%$ in the month of sale. Payment for merchandise is made in the

month following the purchase.

$$ Other monthly expenses to be paid in cash are $$20,300.$

$$ Monthly depreciation is $$20,000.$

Statement of Financial Position as at Oct $31$

Assets $

Cash $27,000$

Accounts receivable $($net of allowance for uncollectible accounts$)79,000$

Inventory $101,400$

Property, plant & equipment $($net of $$574,000$ accumulated depreciation$)1,082,000$

Total assets $1,289,400$

Liabilities and Stockholders$$ Equity

Accounts payable $169,000$

Common stock $740,000$

Retained earnings $380,400$

Total liabilities and stockholders$$ equity $1,289,400$

Q$73$

Expected cash collections in December are:

a$)$ $$49,400$

b$)$ $$184,000$

c$)$ $$230,000$

d$)$ $$233,400$

Q$74$

The cost of December merchandise purchases would be:

a$)$ $$81,900$

b$)$ $$141,700$

c$)$ $$149,500$

d$)$ $$169,000$

Q$75$

December cash disbursements for merchandise purchases would be:

a$)$ $$81,900$

b$)$ $$141,700$

c$)$ $$149,500$

d$)$ $$157,300$

Q$76$

The excess $($deficiency$)$ of cash available over disbursements in December was:

a$)$ $$17,900$

b$)$ $$37,900$

c$)$ $$55,800$

d$)$ $$93,700$

Q$77$

The net income for December would be:

a$)$ $$37,900$

b$)$ $$40,200$

c$)$ $$55,800$

d$)$ $$60,200$

Q$78$

The cash balance at the end of December would be:

a$)$ $$27,000$

b$)$ $$82,800$

c$)$ $$153,500$

d$)$ $$180,500$

Q$79$

The accounts receivable balance, net of uncollectible accounts, at the end of

December would be:

a$)$ $$43,700$

b$)$ $$46,000$

c$)$ $$81,300$

d$)$ $$93,100$

Q$80$

Accounts payable at the end of December would be:

a$)$ $$59,800$

b$)$ $$81,900$

c$)$ $$141,700$

d$)$ $$149,500$

Q$81$

Retained earnings at the end of December would be:

a$)$ $$380,400$

b$)$ $$418,300$

c$)$ $$466,400$

d$)$ $$471,300$