Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $299,000 for November, $319,000 for December, and $219,000 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 $22,000. Monthly depreciation is $25,500. Ignore taxes. Balance SheetOctober 31 Assets Cash $ 32,500 Accounts receivable 81,500 Merchandise inventory 167,440 Property, plant and equipment, net of $624,000 accumulated depreciation 1,013,000 Total assets $ 1,294,440 Liabilities and Stockholders' Equity Accounts payable $ 248,000 Common stock 749,000 Retained earnings 297,440 Total liabilities and stockholders' equity $ 1,294,440 Accounts payable at the end of December would be: Multiple Choice $122,640 $255,200 $76,560 $199,200

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $299,000 for November, $319,000 for December, and $219,000 for...

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

Accounts payable at the end of December would be:

Multiple Choice

Jun 10, 2022