Business, 07.04.2020 01:18 heroicblad

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:
Sales are budgeted at $281,000 for November, $321,000 for December, and $212,000 for January.
Collections are expected to be 75% in the month of sale and 25% 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 90% 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 $20,100.
Monthly depreciation is $22,000.
Ignore taxes.

Balance Sheet
October 31

Assets:
Cash $ 20,000
Accounts receivable 79,500
Merchandise inventory 227,400
Property, plant and equipment, net of $624,000 accumulated depreciation 976,000
Total assets $1,302,900
Liabilities and Stockholders Equity:
Accounts payable $244,000
Common stock 745,000
Retained earnings 313,900
Total liabilities and stockholders' equity $1,302,900

Required:
Expected cash collections in December are $.

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Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operation...

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