TB MC Qu

$.$

$8$

$-$

$1$

$1$

$4$

$($

Static

$)$

$$Dilly Farm Supply is located in a small town...

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

Sales are budgeted at $

$2$

$9$

$0$

$,$

$0$

$0$

$0$

$$for November, $

$3$

$1$

$0$

$,$

$0$

$0$

$0$

$$for December, and $

$2$

$1$

$0$

$,$

$0$

$0$

$0$

$$for January.

Collections are expected to be

$6$

$5$

$\%$

$$in the month of sale and

$3$

$5$

$\%$

$$in the month following the sale.

The cost of goods sold is

$8$

$0$

$\%$

$$of sales.

The company desires to have an ending merchandise inventory at the end of each month equal to

$7$

$0$

$\%$

$$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 $

$2$

$1$

$,$

$1$

$0$

$0$

$.$

Monthly depreciation is $

$2$

$1$

$,$

$0$

$0$

$0$

$.$

Ignore taxes.

Retained earnings at the end of December would be:TB MC Qu

$.$

$8$

$-$

$1$

$1$

$4$

$($

Static

$)$

$$Dilly Farm Supply is located in a small town...

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

Sales are budgeted at $

$2$

$9$

$0$

$,$

$0$

$0$

$0$

$$for November, $

$3$

$1$

$0$

$,$

$0$

$0$

$0$

$$for December, and $

$2$

$1$

$0$

$,$

$0$

$0$

$0$

$$for January.

Collections are expected to be

$6$

$5$

$\%$

$$in the month of sale and

$3$

$5$

$\%$

$$in the month following the sale.

The cost of goods sold is

$8$

$0$

$\%$

$$of sales.

The company desires to have an ending merchandise inventory at the end of each month equal to

$7$

$0$

$\%$

$$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 $

$2$

$1$

$,$

$1$

$0$

$0$

$.$

Monthly depreciation is $

$2$

$1$

$,$

$0$

$0$

$0$

$.$

Ignore taxes.

Balance Sheet

October

$3$

$1$

Assets

Cash $

$2$

$5$

$,$

$0$

$0$

$0$

Accounts receivable

$7$

$7$

$,$

$0$

$0$

$0$

Merchandise inventory

$1$

$6$

$2$

$,$

$4$

$0$

$0$

Property, plant and equipment, net of $

$6$

$2$

$4$

$,$

$0$

$0$

$0$

$$accumulated depreciation

$1$

$,$

$0$

$2$

$6$

$,$

$0$

$0$

$0$

Total assets $

$1$

$,$

$2$

$9$

$0$

$,$

$4$

$0$

$0$

Liabilities and Stockholders' Equity

Accounts payable $

$2$

$3$

$9$

$,$

$0$

$0$

$0$

Common stock

$7$

$4$

$0$

$,$

$0$

$0$

$0$

Retained earnings

$3$

$1$

$1$

$,$

$4$

$0$

$0$

Total liabilities and stockholders' equity $

$1$

$,$

$2$

$9$

$0$

$,$

$4$

$0$

$0$

Retained earnings at the end of November would be: