Hi I only need the calcualtions for the second queston, number 19. Please show d

Question

Hi I only need the calcualtions for the second queston, number 19. Please show detailed explanations.

The next two questions are based on the following 18 &19 Harnison sells baked goods products in Omaha, NE Data regarding the store's operations follow December 350,000 January S 470,000 November Sales budget Collection schedule 425,000 $ Month of sale Next month Uncollectible 70% 27% 3% The cost of goods sold is 65% of sales Other monthly expenses to be paid in cash are $25,000 Monthly depreciation is $15,500 Inventory purchase policy is to maintain 20% of the next month's sales as the ending inventory 60% of the purchase is paid for in the month of purchase, the remainder is paid in the following month Harrison declared a special dividend of $10,000 on November 5 to be paid on Dec 15 Harrison 's Account Payable balance as of November 1 is $63,000 18 Net income for November would be A. B. C$111,000 D. $108,250 E None of the above $95,500 $85,500 42,100? (25 1 soo 1125o 1 14ns 19 The total cash disbursement for inventory purchases in December wauld be CA S 138.240 B. S 243,100 C S 252 460 D S 266,500 350,06 20 65 E. None of the above 305,so ?

Explanation / Answer

Q19: Computation of Cash Disbursement for Inventory: First We need to Calculate Purchases: Purchase Budget November December January Sales Budget 425000 350000 470000 Cost of Goods 276250 227500 305500 (Sales Budget*65%) Add: Closing Inventory 45500 61100 (20% of Next Month Sales) Total Needs 321750 288600 Less: Opening Inventory 55250 45500 (Nov=276250*20%) Net to be Purchased 266500 243100 Cash Disbusements: December For the Month Purchases(60%) 145860 (December Purchases*60%) For the Nov Purchases(40%) 106600 (Nov Purchases*40%) Total 252460 Answer is C

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.