Reference no: EM13753247
Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:
• Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January.
• Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.
• The cost of goods sold is 65% of sales.
• The company desires to have an ending merchandise inventory at the end of each month equal to 50% 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 $22,500.
• Monthly depreciation is $19,000.
• Ignore taxes.
Picture
The accounts receivable balance, net of uncollectible accounts, at the end of December would be:
Select one:
a. $82,000
b. $113,400
c. $60,000
d. $54,000
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: Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January. Collections are expected to be 70% in the mon..
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