Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following budgeted information is collected fo

The following budgeted information is collected for a merchandising company: Budgeted sales (all on...

70.2K

Verified Solution

Question

Accounting

image

The following budgeted information is collected for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $250,000, $220,000, and $200,000, respectively. Cash collections of sales are expected to be 75% in the month of sale and 23% in the month following the sale. The remainder of the sales is expected to be uncollectible. The cost of goods sold is always 65% of sales. Each month's ending inventory equals 20% of next month's cost of goods sold. 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. Monthly selling and administrative expenses that are paid in cash in the month incurred total $20,500. Monthly depreciation expense is $20,000. Dividends of $5,000 to be declared in December and paid in Janauary. The expected cash collections from customers in December are: O $222,500 O $220,000 O $250,000 O $227,500 The ending balance of Accounts Payable for December is: O $84,240 O $95,160 O $140,400 O $56.160 The expected net operating income for December is: O $36,500 O $47,100 O $32.100 O $56,500

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

According to natural law theory, actions are right just because they are natural and wrong just...

Psychology
Q

The electron mobility is … A no correct answer B a coefficient of proportionality between velocity and actual electric field C a...

Electrical Engineering
Q

Are there any specific leadership skills that you might develop in preparation for a position as...

General Management
Q

1c) Why productivity is important in manufacturing? 1d) explain how just in time, the Toyota production system, and learn...

General Management
Q

Broussard Skateboard's sales are expected to increase by 15% from $7.4 million in 2016 to $8.51...

Finance
Q

Which glial cells participate in the formation of the blood brain barrier microglia oligodendrocytes astrocytes...

Biology
Q

Recall the lexicographic monomial order with x1 x2 X defined in Section 9 6 where...

Basic Math
Q

x x 5 x 2 0 Step 1 of 2 Write the polynomial inequality in...

Algebra
Q

Describe the transformations and give the equation for the graph 10 PPA K 111 8...

Algebra
Q

Acct 2 - Managerial Accounting - Fall...

Accounting
Q

PROBLEM 7-16A Schedules of Expected Cash Collections and Disbursements [LO2, LO4, L08] Calgon Products, a...

Accounting
Q

Chase Bank 2021 Balance Sheet Analysis - using vertical/horizontal analysis and liquidity and solvency ratio...

Finance