• Sales are budgeted at $367,000 for November, $337,000 for December, and $317,000 for January. . Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 80% of sales. . The company desires to have an ending merchandise inventory equal to 50% 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 $26,400. . Monthly depreciation is $19,400. • Ignore taxes. Assets Cash Accounts receivable. Inventory Property, plant and equipment, net of $510,500 accumulated depreciation Total assets Balance Sheet October 31 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity. The net income for December would be: Multiple Choice $16,800 $ 24,100 80,400 146,800 1,019,000 $ 1,270,300 $ 280,500 797,000 192,800 $ 1,270,300

• Sales are budgeted at $367,000 for November, $337,000 for December, and $317,000 for January. . Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 80% of sales. . The company desires to have an ending merchandise inventory equal to 50% 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 $26,400. . Monthly depreciation is $19,400. • Ignore taxes. Assets Cash Accounts receivable. Inventory Property, plant and equipment, net of $510,500 accumulated depreciation Total assets Balance Sheet October 31 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity. The net income for December would be: Multiple Choice $16,800 $ 24,100 80,400 146,800 1,019,000 $ 1,270,300 $ 280,500 797,000 192,800 $ 1,270,300

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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