Business, 14.11.2020 15:40 hernsl0263

Hassan Choohamaar Supply sells rodent eradication supplies. Data regarding the store's operations follow: ο Sales are expected to be Rs.220,000 for November, Rs.230,000 for December, and Rs.210,000 for January.

ο Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. ο The cost of goods sold is 75% of sales.

ο The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

ο Other monthly expenses to be paid in cash are Rs.22,500. ο Monthly depreciation is Rs.19,000.

ο Ignore taxes.

Following balances are extracted from Statement of Financial Position on October 31 Cash Rs.16,000 Accounts receivable (net of allowance for doubtful debts) Rs.76,000 Property, plant & equipment (net of Rs.536,000 accumulated depreciation) Rs.956,000 Required:

a) In December, How much cash would be paid to suppliers for purchases?

b) In November, what would be total cash receipts?

c) What would be net income for November?

d) What would be accounts receivable balance at end of December?

e) What would be accounts payable balance at end of November?

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Hassan Choohamaar Supply sells rodent eradication supplies. Data regarding the store's operations fo...

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