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

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Dilly Farm Supply Is Located In A Small Town In The Rural West Data Regarding The Store S Operations Follow Sale 1 (213.92 KiB) Viewed 98 times

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: . . • Sales are budgeted at $254,000 for November, $294,000 for December, and $221,000 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 80% 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 $15,600. Monthly depreciation is $26,500. Ignore taxes. . Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 32,000 82,500 182,880 916,000 $ 1,213,380 $ 250,000 751,000 212,380 $ 1,213,380 Accounts payable at the end of December would be: