Dilly farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $206,000 for November, 436, 900 for December, and $246,000 for tanuary Collections are expected to be 65% in the monith 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 menchandise is mate in the minth for purchase: Other monthly expenses to be paid in cash are $21,700 Monthly depreciation is $21,900 Ignore taxes. Balance Sheet October 31 The difference between cash receipts and cash disbursements for December would be: Muliple Choice A 40000 B 17400 C11300 D 39300
Dilly farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $206,000 for November, 436, 900 for December, and $246,000 for tanuary Collections are expected to be 65% in the monith 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 menchandise is mate in the minth for purchase: Other monthly expenses to be paid in cash are $21,700 Monthly depreciation is $21,900 Ignore taxes. Balance Sheet October 31 The difference between cash receipts and cash disbursements for December would be: Muliple Choice A 40000 B 17400 C11300 D 39300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Dilly farm Supply is located in a small town in the rural west. Data regarding the store's operations
follow Sales are budgeted at $206,000 for November, 436, 900 for December, and $246,000 for
tanuary Collections are expected to be 65% in the monith 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 menchandise is mate in the minth for purchase: Other monthly expenses to be paid
in cash are $21,700 Monthly depreciation is $21,900 Ignore taxes. Balance Sheet October 31 The
difference between cash receipts and cash disbursements for December would be: Muliple Choice A
40000 B 17400 C11300 D 39300
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