Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • 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. . 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 $22,600. . Monthly depreciation is $28,500. • Ignore taxes. Assets Cash 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 Accounts payable at the end of December would be: Multiple Choice Balance Sheet October 31 $126.000 $ 34,000 84,500 170,800 920,000 $ 1,209,300 $ 254,000 755,000 200, 300 $ 1,209,300

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • 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. . 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 $22,600. . Monthly depreciation is $28,500. • Ignore taxes. Assets Cash 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 Accounts payable at the end of December would be: Multiple Choice Balance Sheet October 31 $126.000 $ 34,000 84,500 170,800 920,000 $ 1,209,300 $ 254,000 755,000 200, 300 $ 1,209,300

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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