Dilly Farm Supply is located in a small town in the rural west. Data regarding t

Question

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow . Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% 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 $21100 . Monthly depreciation is $21,000. . Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,009 accumulated depreciation Total assets 25,0ee 77,000 162,400 1,026,00e $1,290,400 Liabilities and Stockholders Equity Prey 17 of 25E Next TOSHIBA

Explanation / Answer

Sales (January) $210,000.00 Cost of Good Sold (80% x Jan. Sales) $168,000.00 Merchandise Inventory for December = 70% x Jan. COGS $117,600.00

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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