19-27 DY Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: ● ● ● ● ● ● Sales are budgeted at P290,000 for November, P310,000 for December, and P210,000 for January. Collections are expected to be 65% in the month of sale, 33% in the month following the sale, and 2% uncollectible. The cost of goods sold is 80% of sales. The company purchases 70% of its merchandise in the month prior to the month of sale and 30% 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 P21,100. Monthly depreciation is P21,000.Ignoro taxos. Statement of Financial Position October 31 Assots: Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant and equipment (net of P624,000 accumulated depreciation) Total assets Liabilities and Stockholders' Equity: Accounts payable Common stock Retained eamings Total liabilities and stockholders' equity P 25,000 77,000 162,400 1.026.000 P1.290.400 P 239,000 740,000 311,400 P1.290.400

19-27 DY Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: ● ● ● ● ● ● Sales are budgeted at P290,000 for November, P310,000 for December, and P210,000 for January. Collections are expected to be 65% in the month of sale, 33% in the month following the sale, and 2% uncollectible. The cost of goods sold is 80% of sales. The company purchases 70% of its merchandise in the month prior to the month of sale and 30% 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 P21,100. Monthly depreciation is P21,000.Ignoro taxos. Statement of Financial Position October 31 Assots: Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant and equipment (net of P624,000 accumulated depreciation) Total assets Liabilities and Stockholders' Equity: Accounts payable Common stock Retained eamings Total liabilities and stockholders' equity P 25,000 77,000 162,400 1.026.000 P1.290.400 P 239,000 740,000 311,400 P1.290.400

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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