1 Miles Hardware sells fasteners and general building supplies to building contractors in a medium-sized town inMontana, data regarding the store's operations in 2014 is collected as below:Sales are budgeted at:November $ 380,000December $ 390,000January $ 400,000The following cash collection schedule is used:The month of sale 70%Next month 27%Uncollectible 3%Cost of goods sold: 65% of salesDesired ending inventory equals to: 80% of the following month's cost of goods soldPayment for merchandise is made in the month following the purchase.Other monthly expenses to be paid in cash: $ 22,000Monthly depreciation: $ 20,000Miles declares a dividend payable on December 15 of: $ 12,000 (paid on January 15, 2015)Ignore taxes.Balance Sheet on October 31AssetsCash $15,000Accounts Receivable (net of allowance) $ 77,000Inventory $ 197,600Property, plant and equipment (net) $ 992,000Total Assets $ 1,281,600Liabilities and Stockholder's EquityAccounts Payable $ 240,000Common Stock $ 780,000Retained Earnings $ 259,600Total Liabilities and Stockholders Equity $ 1,279,600Retained earnings at December 31 will be:The cash balance at the end of December would be:

For Purpose of Determining the Retained Earning First We need the Profit and Loss Account :Miles…

Answered: Retained earnings at December 31 will…

Business

Accounting

Retained earnings at December 31 will be: The cash balance at the end of December would be:

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter21: Cash Budgeting (cashbud)

Section: Chapter Questions

Problem 1R: On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is...

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Miles Hardware sells fasteners and general building supplies to building contractors in a medium-sized town in
Montana, data regarding the store's operations in 2014 is collected as below:
Sales are budgeted at:
November $ 380,000
December $ 390,000
January $ 400,000
The following cash collection schedule is used:
The month of sale 70%
Next month 27%
Uncollectible 3%
Cost of goods sold: 65% of sales
Desired ending inventory equals to: 80% 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: $ 22,000
Monthly depreciation: $ 20,000
Miles declares a dividend payable on December 15 of: $ 12,000 (paid on January 15, 2015)
Ignore taxes.
Balance Sheet on October 31
Assets
Cash $15,000
Accounts Receivable (net of allowance) $ 77,000
Inventory $ 197,600
Property, plant and equipment (net) $ 992,000
Total Assets $ 1,281,600
Liabilities and Stockholder's Equity
Accounts Payable $ 240,000
Common Stock $ 780,000
Retained Earnings $ 259,600
Total Liabilities and Stockholders Equity $ 1,279,600
Retained earnings at December 31 will be:
The cash balance at the end of December would be:

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Accounting for Cash and cash equivalents

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