Oiner montniy expenses to de paia în casn are 325,700. Monthly depreciation is $18,000. Ignore taxes. The net income for December would be: O$55,300 O $59,300 O $47,200 O $73,300

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Other monthly expenses to be paid in cash are 325,700.
Monthly depreciation is $18,000.
Ignore taxes.
The net income for December would be:
O$55,300
O$59,300
O $47,200
O $73,300
Transcribed Image Text:Other monthly expenses to be paid in cash are 325,700. Monthly depreciation is $18,000. Ignore taxes. The net income for December would be: O$55,300 O$59,300 O $47,200 O $73,300
Acme Company sells lumber and general building supplies to
building contractors. Data regarding the store's operations
follow:
Sales are budgeted at $360,000 for November, $330,000 for December, and
$310,000 for January.
Collections are expected to be 90% in the month of sale and 10% in the month
following the sale.
The cost of goods sold is 70% of sales.
The company desires to have an ending merchandise inventory equal to 70%
of the following 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 $25,700.
Monthly depreciation is $18,000.
Ignore taxes.
Transcribed Image Text:Acme Company sells lumber and general building supplies to building contractors. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $330,000 for December, and $310,000 for January. Collections are expected to be 90% in the month of sale and 10% in the month following the sale. The cost of goods sold is 70% of sales. The company desires to have an ending merchandise inventory equal to 70% of the following 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 $25,700. Monthly depreciation is $18,000. Ignore taxes.
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