Reference no: EM131291940
Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $380,000 for November, $390,000 for December, and $400,000 for January. o Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. o The cost of goods sold is 65% of sales. o The company desires to have an ending merchandise inventory equal to 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $22,000. o Monthly depreciation is $20,000. o Ignore taxes. Balance Sheet October 31 Assets Cash $13,000 Accounts receivable, net of allowance for uncollectible accounts 77,000 Inventory 197,600 Property, plant and equipment, net of $502,000 accumulated depreciation 992,000 Total assets $1,279,600 Liabilities and Stockholders' Equity Accounts payable $240,000 Common stock 780,000 Retained earnings 259,600 Total liabilities and stockholders' equity $1,279,600 The cash balance at the end of December would be: Select one:
a. $182,400
b. $114,400
c. $13,000
d. $195,400
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Assets liabilities and equity current assets
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Chart of accounts for exact wording of account titles
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: Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000, other operating expenses is $300,000, addition to retained earnings is $146,250, dividends per share is $1, tax rate is 30 percent, and number of shares of comm..
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General building supplies to building contractors
: Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $380,000 for November, $390,000 for December, and $400,000 for J..
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Calculate the times interest earned ratio
: Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000, other operating expenses is $300,000, addition to retained earnings is $146,250, dividends per share is $1, tax rate is 30 percent, and number of shares of comm..
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