Dynamic - Problem and answer changes with each attempt (consider an Excel solution) Farm Supply is located in a small town on the coast of California. Data regarding the store's operations follow: • Sales are budgeted at 311,667 for November, $333,118 for December, and $ 248,717 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. • The company 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. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,400. • Monthly depreciation is $27,500. • 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 Balance Sheet October 31 Type your answer $ 33,000 83,500 181,800 918,000 $1,216,300 $252,000 753,000 211,300 $1,216,300 Total liabilities and stockholders' equity Calculate the difference between cash receipts and cash disbursements for December. Hint: Range of answer is 45,0000 to 60,000

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Chapter1: Financial Statements And Business Decisions
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Dynamic - Problem and answer changes with each attempt (consider an Excel solution)
Farm Supply is located in a small town on the coast of California. Data regarding the store's operations follow:
• Sales are budgeted at 311,667 for November, $ 333,118 for December, and $ 248,717 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.
• The company 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. Payment for merchandise is made in the
month following the purchase.
• Other monthly expenses to be paid in cash are $22,400.
• Monthly depreciation is $27,500.
• Ignore taxes.
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
$ 33,000
83,500
181,800
918,000
$1,216,300
$ 252,000
753,000
211,300
Total liabilities and stockholders' equity
$ 1,216,300
Calculate the difference between cash receipts and cash disbursements for December.
Hint: Range of answer is 45,0000 to 60,000
Type your answer...
Transcribed Image Text:Dynamic - Problem and answer changes with each attempt (consider an Excel solution) Farm Supply is located in a small town on the coast of California. Data regarding the store's operations follow: • Sales are budgeted at 311,667 for November, $ 333,118 for December, and $ 248,717 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. • The company 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. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,400. • Monthly depreciation is $27,500. • Ignore taxes. 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 $ 33,000 83,500 181,800 918,000 $1,216,300 $ 252,000 753,000 211,300 Total liabilities and stockholders' equity $ 1,216,300 Calculate the difference between cash receipts and cash disbursements for December. Hint: Range of answer is 45,0000 to 60,000 Type your answer...
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