- Sales Are Budgeted At 350 000 For November 320 000 For December And 300 000 For January Collections Are Expected 1 (31.92 KiB) Viewed 56 times
- Sales Are Budgeted At 350 000 For November 320 000 For December And 300 000 For January Collections Are Expected 2 (24.75 KiB) Viewed 56 times
- Sales Are Budgeted At 350 000 For November 320 000 For December And 300 000 For January Collections Are Expected 3 (24.75 KiB) Viewed 56 times
6 01:20:09 Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow . Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January • Collections are expected to be 90% in the month of sale and 10% in the month following the sale. • The cost of goods sold is 75% of sales. . The company desires to have an ending merchandise inventory equal to 60% of the following 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 $24.700 • Monthly depreciation is $16,000. Ignore taxes Assets Cash Balance Sheet October 31 Accounts receivable Inventory Property, plant and equipment, net of $502,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Connon stock Retained earnings Total liabilities and stockholders' equity reld he $ 19,000 77,000 157,500 1,002,000 $ 1,255,500 $ 272,000 780,000 203,500 $ 1,255,500