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

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Accounting

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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 $297,000 for November, $317,000 for December, and $217000 for January Collections are expected to be 70% in the month of sale and 30% 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 80% 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 $21,800. Monthly depreciation is $24,500 . Ignore taxes. ces Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory $28, 500 80, 500 184, 900 1,011,00o depreciation Balance Sheet october 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets $28,500 80,500 184,900 1,011,000 $1,304,900 Liabilities and stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 243,000 747,000 314,900 $1,304,900 Expected cash collections in December are

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