Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following information is for questions 2 until 10: Dilom Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January. • Collections are expected to be 55% in the month of sale, 40% in the month following the sale, and 5% uncollectible. • The cost of goods sold is 80% of sales. • The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $21,700. Monthly depreciation is $17,000. • Ignore taxes. Statement of Financial Position October 31 Assets: Cash. $ 28.000 Accounts receivable (net of allowance for uncollectible accounts) Inventory. 78.000 104.000 Property. plant and equipment (net of $640,000 accumulated depreciation).. Total assets... 1.132.000 $1,342,000 Liabilities and Stockholders Equity: Accounts payable $ 200.000 Common stock 800.000 Retained earnings. Total liabilities and stockholders' equity 342.000 $1,342.000

The following information is for questions 2 until 10: Dilom Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January. • Collections are expected to be 55% in the month of sale, 40% in the month following the sale, and 5% uncollectible. • The cost of goods sold is 80% of sales. • The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $21,700. Monthly depreciation is $17,000. • Ignore taxes. Statement of Financial Position October 31 Assets: Cash. $ 28.000 Accounts receivable (net of allowance for uncollectible accounts) Inventory. 78.000 104.000 Property. plant and equipment (net of $640,000 accumulated depreciation).. Total assets... 1.132.000 $1,342,000 Liabilities and Stockholders Equity: Accounts payable $ 200.000 Common stock 800.000 Retained earnings. Total liabilities and stockholders' equity 342.000 $1,342.000

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
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...
See similar textbooks
icon
Related questions
icon
Concept explainers
Question
The following information is for questions 2 until 10: Dilom Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January. • Collections are expected to be 55% in the month of sale, 40% in the month following the sale, and 5% uncollectible. • The cost of goods sold is 80% of sales. • The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $21,700. Monthly depreciation is $17,000. Ignore taxes. Statement of Financial Position October 31 Assets: Cash. $28.000 Accounts receivable (net of allowance for uncollectible accounts) 78.000 Inventory Property, plant and equipment (net of $640,000 accumulated depreciation). 104.000 1.132.000 $1.342.000 Total assets... Liabilities and Stockholders Equity: Accounts payable $200,000 .... Common stock 800.000 Retained earnings... Total liabilities and stockholders' equity 342.000 $1.342,000
Transcribed Image Text:The following information is for questions 2 until 10: Dilom Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January. • Collections are expected to be 55% in the month of sale, 40% in the month following the sale, and 5% uncollectible. • The cost of goods sold is 80% of sales. • The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $21,700. Monthly depreciation is $17,000. Ignore taxes. Statement of Financial Position October 31 Assets: Cash. $28.000 Accounts receivable (net of allowance for uncollectible accounts) 78.000 Inventory Property, plant and equipment (net of $640,000 accumulated depreciation). 104.000 1.132.000 $1.342.000 Total assets... Liabilities and Stockholders Equity: Accounts payable $200,000 .... Common stock 800.000 Retained earnings... Total liabilities and stockholders' equity 342.000 $1.342,000
8. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A. $89,500 B. $92,000 C. $103,500 D. $196,000 9. Accounts payable at the end of December would be: A. $84,000 B. $92,000 C. $184,000 D. $176,000 10. Retained earnings at the end of December would be: A. $342,000 B. $362,600 C. $337,800 D. $338,100
Transcribed Image Text:8. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A. $89,500 B. $92,000 C. $103,500 D. $196,000 9. Accounts payable at the end of December would be: A. $84,000 B. $92,000 C. $184,000 D. $176,000 10. Retained earnings at the end of December would be: A. $342,000 B. $362,600 C. $337,800 D. $338,100
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS