Dilly Farm Supply is located in a small town in the rural west. Data regarding the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $251,000 for November, $291,000 for December, and $218,000 for January. • Collections are expected to be 60% in the month of sale and 40% 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 $20,000. • Monthly depreciation is $25,000. Ignore taxes. Balance Sheet October 31 Assets Cash $ 26,000 Accounts receivable 81,000 Merchandise inventory 169,425 Property, plant and equipment, net of $624,000 accumulated depreciation 946,000 Total assets $ 1,222,425 Liabilities and Stockholders' Equity Accounts payable $ 247,000 Common stock 748,000 Retained earnings 227,425 Total liabilities and stockholders' equity $ 1,222,425 Retained earnings at the end of December would be: Multiple Choice $272,325 $227,425 $272,925 $251,925 Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $251,000 for November, $291,000 for December, and $218,000 for January. • Collections are expected to be 60% in the month of sale and 40% 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 $20,000. • Monthly depreciation is $25,000. Ignore taxes. Balance Sheet October 31 Assets Cash $ 26,000 Accounts receivable 81,000 Merchandise inventory 169,425 Property, plant and equipment, net of $624,000 accumulated depreciation 946,000 Total assets $ 1,222,425 Liabilities and Stockholders' Equity Accounts payable $ 247,000 Common stock 748,000 Retained earnings 227,425 Total liabilities and stockholders' equity $ 1,222,425 Retained earnings at the end of December would be: Multiple Choice $272,325 $227,425 $272,925 $251,925
Expert Answer:
Answer rating: 100% (QA)
Answers November December Sales 251000 291000 Less Cost of goods sold 18... View the full answer
Related Book For
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach
Posted Date:
Students also viewed these accounting questions
-
Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $240,000 for November, $220,000 for December, and $230,000 for...
-
The College Avenue Sub Shop is located in a small college town. Virtually all of its phone delivery orders are in the evening, between 5:00 P.M. and 1:00 A.M., so the shop has a delivery person for...
-
The baking company is located in a small town in New York State. The bakery is run by two brothers. The company employs fewer than 200 people, mainly blue-collar workers, and the atmosphere is...
-
Compare to traditional organizational development approaches. To get back on track and find a way to function more smoothly, should this taskforce use an Appreciative Inquiry approach or a more...
-
Colgate Company experienced the following events and transactions during July: July 1 Received $2,800 cash in advance of performing work for Vivian Solana. 6 Received $8,100 cash in advance of...
-
In Exercises determine the convergence or divergence of the sequence with the given nth term. If the sequence converges, find its limit. an = COS TTN n
-
Platinum Status Ltd uses an annual flexible budget based on standard direct machine hours for the following factory overhead items. Required (a) Why is a flexible budget performance report a better...
-
Go to the Structural Styles section and create a style rule that sets the background color of the browser window to rgb(173, 189, 227). Create a style rule for the body element that sets the...
-
Q) What is spring Framework? How many modules are there in spring framework? Q) Explain spring MVC architecture? What is Spring Boot? Q) In how many ways we can create a spring boot project?...
-
Beverly and Ken Hair have been married for 3 years. Beverly works as an accountant at Cypress Corporation. Ken is a full-time student at Southwest Missouri State University (SMSU) and also works...
-
Use source code: Header file: Main file: In the main program, add lines of code to perform the following on a dynamically allocated single instance of the class: a) Use new to create a single...
-
Zimt AG presents its financial statements in accordance with US GAAP. In 2007, Zimt discloses a valuation allowance of $1,101 against total deferred tax assets of $19,201. In 2006, Zimt disclosed a...
-
A company receives advance payments from customers that are immediately taxable but will not be recognized for accounting purposes until the company fulfills its obligation. The company will most...
-
The companys effective tax rate was highest in: A. 2005. B. 2006. C. 2007. Note I Income Taxes The components of earnings before income taxes are as follows ($ thousands): Earnings before income...
-
For the year 2010, the remeasurement component of Kensingtons periodic pension cost represents: A. the change in the net pension obligation. B. actuarial gains and losses on the pension obligation....
-
Under IFRS, the amount of periodic pension cost that would be reported in OCI is closest to: A. 20. B. 490. C. 1,020. XYZ SA, a hypothetical company, offers its employees a defined benefit pension...
-
All organizations incur non value added costs. Eliminating or reducing non value added costs is the responsibility of managers. Using the Activity Based Management approach and focusing on the...
-
Provide a draft/outline of legal research involving an indigenous Canadian woman charged with assault causing bodily harm under (Sec 267b) of the Criminal Code, where the crown wants a 12-month jail...
-
In 2009, SW purchased 1,000 shares of Delta stock. On May 20 of the current year it sold these shares for $90 per share. In each of the following cases, compute SWs recognized gain or loss on this...
-
Elsworthy Company operates a number of public golf courses in Florida. This year, Elsworthy constructed six new greens of a type described as modern greens. Modern greens contain sophisticated...
-
Issue Recognition Problems Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question. ST Inc. and Firm WX are negotiating an exchange of...
-
Someone who exposes the ethical misdeeds of others in an organization is usually called a/an _________. (a) whistleblower (b) ethics advocate (c) ombudsman (d) stakeholder
-
If a manager fails to enforce a late-to-work policy for all workersthat is, by allowing some favored employees to arrive late without penaltiesthis would be considered a violation of _________. (a)...
-
According to research on ethics in the workplace, _________ is/are often a major and frequent source of pressures that create ethical dilemmas for people in their jobs. (a) declining morals in...
Study smarter with the SolutionInn App