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Riffa Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Riffa Company Balance Sheet September 30 Assets Cash $11,400 Accounts receivable 75,000 Inventory 41,000 224,000 Buildings and equipment, net of depreciation Total assets $ 351,400 Liabilities and Stockholders' Equity $70,000 Accounts payable Common stock 195,500 85,900 Retained earnings $ 351,400 Total liabilities and stockholders' equity The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be cred Question Completion Status: 2 3 4 Total liabilities and stockholders' equity | S 351,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be cre sales. 50% of a month's credit sales are collected in the month the sales are made, and the remaining is collected in the following month. of the September 30 accounts receivable will be collected in October. the following month's c 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of goods sold. 3. All merchandise purchases are on account. Forty percent of all purchases are paid for in the month of purchase and 60% are paid for in following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $86,000, exclusive of depreciation. These expenses will be paid in e Depreciation is budgeted at $2,750 for the month. Required: Using the information provided, Calculate, or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. Ortaha

Riffa Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Riffa Company Balance Sheet September 30 Assets Cash $11,400 Accounts receivable 75,000 Inventory 41,000 224,000 Buildings and equipment, net of depreciation Total assets $ 351,400 Liabilities and Stockholders' Equity $70,000 Accounts payable Common stock 195,500 85,900 Retained earnings $ 351,400 Total liabilities and stockholders' equity The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be cred Question Completion Status: 2 3 4 Total liabilities and stockholders' equity | S 351,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be cre sales. 50% of a month's credit sales are collected in the month the sales are made, and the remaining is collected in the following month. of the September 30 accounts receivable will be collected in October. the following month's c 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of goods sold. 3. All merchandise purchases are on account. Forty percent of all purchases are paid for in the month of purchase and 60% are paid for in following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $86,000, exclusive of depreciation. These expenses will be paid in e Depreciation is budgeted at $2,750 for the month. Required: Using the information provided, Calculate, or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. Ortaha

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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To points Save Answer Riffa Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Riffa Company Balance Sheet September 30 Assets Cash $11,400 Accounts receivable 75,000 Inventory 41,000 Buildings and equipment, net of depreciation 224,000 Total assets $ 351,400 Liabilities and Stockholders' Equity $70,000 Accounts payable Common stock 195,500 Retained earnings 85,900 $ 351,400 Total liabilities and stockholders' equity The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be credit Question Completion Status: 2 4 Total liabilities and stockholders' equity S 351,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be credit sales. 50% of a month's credit sales are collected in the month the sales are made, and the remaining is collected in the following month. All of the September 30 accounts receivable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. 3. All merchandise purchases are on account. Forty percent of all purchases are paid for in the month of purchase and 60% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $86,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,750 for the month. Required: Using the information provided, Calculate, or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. The budgeted net operating income for October. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Transcribed Image Text:To points Save Answer Riffa Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Riffa Company Balance Sheet September 30 Assets Cash $11,400 Accounts receivable 75,000 Inventory 41,000 Buildings and equipment, net of depreciation 224,000 Total assets $ 351,400 Liabilities and Stockholders' Equity $70,000 Accounts payable Common stock 195,500 Retained earnings 85,900 $ 351,400 Total liabilities and stockholders' equity The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be credit Question Completion Status: 2 4 Total liabilities and stockholders' equity S 351,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $220,000 for October and $230,000 for November. Of these sales, 30% will be for cash; the remainder will be credit sales. 50% of a month's credit sales are collected in the month the sales are made, and the remaining is collected in the following month. All of the September 30 accounts receivable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. 3. All merchandise purchases are on account. Forty percent of all purchases are paid for in the month of purchase and 60% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $86,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,750 for the month. Required: Using the information provided, Calculate, or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. The budgeted net operating income for October. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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