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Business, 25.04.2020 00:52 jaylen63

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $294,000 for November, $314,000 for December, and $214,000 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 $21,500. Monthly depreciation is $23,000. Ignore taxes. Balance Sheet October 31 Assets Cash$27,000 Accounts receivable 79,000 Merchandise inventory 183,400 Property, plant and equipment, net of $624,000 accumulated depreciation 1,008,000 Total assets$1,297,400 Liabilities and Stockholders' Equity Accounts payable$240,000 Common stock 744,000 Retained earnings 313,400 Total liabilities and stockholders' equity$1,297,400 Expected cash collections in December are: Multiple Choice $314,000 $88,200 $308,000 $219,800

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