Data for RelyaTech Corp., a large merchandiser, is below: • Sales are budgeted at $300,000 for November, $320,000 for December, and $220,000 for January. • Collections are expected to be 70% in the month of sale and 30% in the month following the sale. • The cost of goods sold is 75% of sales. • RelyaTech desires to have an ending merchandise inventory at the end of each month equal to 80% of the next month's cost of goods sold. F merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,100. • Monthly depreciation is $26,000. • Ignore taxes. • (ID#95496) 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 30,000 82,000 180,000 1,014,000 $1,306,000 $ $ 246,000 750,000

Data for RelyaTech Corp., a large merchandiser, is below: • Sales are budgeted at $300,000 for November, $320,000 for December, and $220,000 for January. • Collections are expected to be 70% in the month of sale and 30% in the month following the sale. • The cost of goods sold is 75% of sales. • RelyaTech desires to have an ending merchandise inventory at the end of each month equal to 80% of the next month's cost of goods sold. F merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,100. • Monthly depreciation is $26,000. • Ignore taxes. • (ID#95496) 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 30,000 82,000 180,000 1,014,000 $1,306,000 $ $ 246,000 750,000

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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