. Sales are budgeted at $308,000 for November, $328,000 for December, and $228,000 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 desires to have an ending merchandise inventory at the end of each month 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 $22,900. . Monthly depreciation is $30,000. . Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Shareholder's Equity Accounts payable Common shares Retained earnings Total liabilities and shareholder's equity tained earnings at the end of December would be: Multiple Choice OOOO $223.380 $199.480 Balance Sheet October 31 $201,980 $254,780 $ 35,500 86,000 172,480 923,000 $ 1,216,980 $ 257,000 758,000 201,980 $ 1,216,980

. Sales are budgeted at $308,000 for November, $328,000 for December, and $228,000 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 desires to have an ending merchandise inventory at the end of each month 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 $22,900. . Monthly depreciation is $30,000. . Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Shareholder's Equity Accounts payable Common shares Retained earnings Total liabilities and shareholder's equity tained earnings at the end of December would be: Multiple Choice OOOO $223.380 $199.480 Balance Sheet October 31 $201,980 $254,780 $ 35,500 86,000 172,480 923,000 $ 1,216,980 $ 257,000 758,000 201,980 $ 1,216,980

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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answer?
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