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Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $251,000 for November, $291,000 for December, and $218,000 for January. • Collections are expected to be 60% in the month of sale and 40 % in the month following the sale. . The cost of goods sold is 75% of sales. • The company desires to have an ending merchandise inventory at the end of each month equal to 90% 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 $20,000. . Monthly depreciation is $25,000. • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable. Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Accounts payable at the end of December would be: $ 26,000 81,000 169,425 946,000 $ 1,222,425 $ 247,000 748,000 227,425 $ 1,222,425

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $251,000 for November, $291,000 for December, and $218,000 for January. • Collections are expected to be 60% in the month of sale and 40 % in the month following the sale. . The cost of goods sold is 75% of sales. • The company desires to have an ending merchandise inventory at the end of each month equal to 90% 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 $20,000. . Monthly depreciation is $25,000. • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable. Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Accounts payable at the end of December would be: $ 26,000 81,000 169,425 946,000 $ 1,222,425 $ 247,000 748,000 227,425 $ 1,222,425

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 19E: Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of...
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Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Accounts payable at the end of December would be: Multiple Choice $168.975 $218,250 $147,150 $21,825 $ 247,000 748,000 227,425 $ 1,222,425
Transcribed Image Text:Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Accounts payable at the end of December would be: Multiple Choice $168.975 $218,250 $147,150 $21,825 $ 247,000 748,000 227,425 $ 1,222,425
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow. • Sales are budgeted at $251,000 for November, $291,000 for December, and $218,000 for January. • Collections are expected to be 60% in the month of sale and 40% in the month following the sale. • The cost of goods sold is 75% of sales. • The company desires to have an ending merchandise Inventory at the end of each month equal to 90% 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 $20,000. • Monthly depreciation is $25,000. . Ignore taxes. Assets Cash Balance Sheet October 311 Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable. Common stock Retained earnings Total liabilities and stockholders' equity Accounts payable at the end of December would be: $ 26,000 81,000 169,425 946,000 $ 1,222,425 $ 247,000 748,000 227,425 $ 1,222,425
Transcribed Image Text:Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow. • Sales are budgeted at $251,000 for November, $291,000 for December, and $218,000 for January. • Collections are expected to be 60% in the month of sale and 40% in the month following the sale. • The cost of goods sold is 75% of sales. • The company desires to have an ending merchandise Inventory at the end of each month equal to 90% 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 $20,000. • Monthly depreciation is $25,000. . Ignore taxes. Assets Cash Balance Sheet October 311 Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable. Common stock Retained earnings Total liabilities and stockholders' equity Accounts payable at the end of December would be: $ 26,000 81,000 169,425 946,000 $ 1,222,425 $ 247,000 748,000 227,425 $ 1,222,425
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