Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dilly farm supply is located in a small town in th

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

60.1K

Verified Solution

Question

Accounting

image

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% 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 $21,100. Monthly depreciation is $21,000. Ignore taxes. Balance Sheet October 31 Assets Cash $ 25,000 77,000 162,400 1,026,000 $ 1,290,400 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 $ 239,000 740,000 311,400 $ 1,290,400 The cash balance at the end of December would be

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Electrical Engineering
1.2K views

Find 10 (TEN) different antennas and draw the antenna and radiation pattern in 3 dimensions. Make...

Calculus
1.2K views

You spin this spinner 3 times Find the probability of these 3 events P red...

Accounting
1.2K views

How does the taxable income formula map into the items on the Form 1040?

Accounting
1.2K views

NEED ASAP PLEASE AND THANK YOU IN ADVANCE!!!!! There are many ways that a...

Accounting
1.2K views

The management of Revco Products is exploring four different investment opportunities. Information on the four...

Accounting
1.2K views

What is another term used to describe unsecured bonds? Multiple Choice O O O O...

Accounting
1.2K views

Old MathJax webview close out income statement ...

Accounting
1.2K views

Select the most appropriate item from the dropdown to match each of the following terms...

Accounting
1.2K views

A retailer had a beginning merchandise inventory of $45,000, an ending merchandise inventory of $55,000,...

Accounting
1.2K views

Morganton Company makes one product and it provided the following information to help prepare the...

Accounting
1.2K views

Charleigh, Inc. ...

Finance
1.2K views

A callable bond gives its issuer the right to buy back at a specified price...