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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

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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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