Multiple Choice о $22,200 $26,300 о $17,400 $40,400 Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: • Sales are budgeted at $361,000 for November, $331,000 for December, and $311,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • • The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory equal to 50% of the following 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 $25,800. • • Monthly depreciation is $18,200. • Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of $507,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The net income for December would be: $ 22,300 79,200 144,400 1,013,000 $ 1,258,900 $ 277,500 791,000 190,400 $ 1,258,900

Multiple Choice о $22,200 $26,300 о $17,400 $40,400 Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: • Sales are budgeted at $361,000 for November, $331,000 for December, and $311,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • • The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory equal to 50% of the following 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 $25,800. • • Monthly depreciation is $18,200. • Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of $507,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The net income for December would be: $ 22,300 79,200 144,400 1,013,000 $ 1,258,900 $ 277,500 791,000 190,400 $ 1,258,900

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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