Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $293,000 for November, $313,000 for December, and $213,000 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. 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 merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,400. • Monthly depreciation is $22,500. . Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,808 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: Multiple Choice OOO O $18,300 $12.500 Balance Sheet October 31 $39.000 $43.300 $ 26,500 78,500 164,980 1,007,000 $ 1,276,080 $ 239,000 743,000 294,080 $ 1,276,080

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $293,000 for November, $313,000 for December, and $213,000 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. 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 merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,400. • Monthly depreciation is $22,500. . Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,808 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: Multiple Choice OOO O $18,300 $12.500 Balance Sheet October 31 $39.000 $43.300 $ 26,500 78,500 164,980 1,007,000 $ 1,276,080 $ 239,000 743,000 294,080 $ 1,276,080

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 19E: Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of...

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