ruta Inc. provided the following data: June July August September Net Sales 1,274,000 676,000 1,020,000 780,000 Purchases of merchandise (includes freight-in) 760,000 65,0000 700,000 560,000 Beginning Inventory 300,000 80,000 210,000 110,000 Ending Inventory 80,000 210,000 110,000 90,000 Rent Expense 30,000 30,000 30,000 30,000 Interest Expense 4,000 4,000 4,000 4,000 Payments towards loan principal 26,000 26,000 26,000 26,000 Salaries Expense 55,000 65,000 65,000 55,000 Depreciation Expense (Office Equipment) 40,000 40,000 40,000 40,000 Fruta collects 40% of its sales in the month of sale, 35% in the month after the sale, and 25% in the second month following the sale. Bad debt expense is zero. The cash balance on September 1 is $160,000. Fruta pays 100% of merchandise purchases in the month purchased All other costs and expenses involving payments are paid in the month incurred. Fruta makes loan payments of $30,000 per month of which $4,000 is interest and the remainder is principal. Fruta is in a special enterprise zone and pays no taxes. 

a. Provide Fruta's operating income statement for the month of August

b. Calculate Fruta's cash balance at the end of September

Answer rating: 100% (QA)

Fruta Inc Operating Income Statement for August Operating Income Statement for August Fruta Inc Augu... View the full answer