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Data for RelyaTech Corp, a large merchandiser, is below: • Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 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. • RelyaTech 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 $22,600. - Monthly depreciation is $28,500. Ignore taxes . (ID#67076)

Data for RelyaTech Corp, a large merchandiser, is below: • Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 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. • RelyaTech 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 $22,600. - Monthly depreciation is $28,500. Ignore taxes . (ID#67076)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Data for RelyaTech Corp., a large merchandiser, is below: • Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 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. • RelyaTech 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 $22,600. • Monthly depreciation is $28,500. Ignore taxes • (ID#67076) Assets Cash Balance Sheet October 31 Accounts receivable. Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 34,000 84,500 170,800 920,000 $1,209,300 $ 254,000 755,000 200,300 $1,209,300
Transcribed Image Text:Data for RelyaTech Corp., a large merchandiser, is below: • Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 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. • RelyaTech 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 $22,600. • Monthly depreciation is $28,500. Ignore taxes • (ID#67076) Assets Cash Balance Sheet October 31 Accounts receivable. Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 34,000 84,500 170,800 920,000 $1,209,300 $ 254,000 755,000 200,300 $1,209,300
Total liabilities and stockholders' equity Q) What is the cost of December merchandise purchases for RelyaTech? Multiple Choice $260.000 $204,000 $126.000 $244,000 $1,209,300
Transcribed Image Text:Total liabilities and stockholders' equity Q) What is the cost of December merchandise purchases for RelyaTech? Multiple Choice $260.000 $204,000 $126.000 $244,000 $1,209,300
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