EX $9-29($Algo$)$ Budgeted Financial Statements; Retailer $($LO $9-3,9-5)$

Eastside Hardware is a retail hardware store. Information about the store's operations follows.

November $201$ sales amounted to $$460,000.$

Sales are budgeted at $$500,000$ for December $201$ and $$460,000$ for January $202.$

Collections are expected to be $60$ percent in the month of sale and $38$ percent in the month following the sale. Two percent of sales

are expected to be uncollectible. Bad debts expense is recognized monthly.

The store's gross margin is $30$ percent of its sales revenue.

A total of $90$ percent of the merchandise for resale is purchased in the month prior to the month of sale, and $10$ percent is

purchased in the month of sale. Payment for merchandise is made in the month following the purchase.

Other monthly expenses paid in cash amount to $$45,800.$

Annual depreciation is $$450,000.$

The company's balance sheet as of November $30,201,$ is as follows:

EASTSIDE HARDWARE, Incorporated Balance Sheet November $30,201$

Cash

Assets

Accounts receivable $($net of $$7,600$ allowance for uncollectible accounts$)$

Inventory

Property, plant, and equipment $($net of $$1,240,000$ accumulated depreciation$)$

Total assets

Accounts payable

Liabilities and Stockholders' Equity

Common stock

Retained earnings

Total liabilities and owner's equity

Required:

Compute the budgeted cash collections for December $201.$

Compute the budgeted income $($loss$)$ before income taxes for December $20$x$1.$

Compute the projected balance in accounts payable on December $31,201.$

Complete this question by entering your answers in the tabs below.

Compute the budgeted cash collections for December $201.$