Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: $\bullet$Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
$\bullet$Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
$\bullet$The cost of goods sold is 80% of sales.
$\bullet$The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
$\bullet$Other monthly expenses to be paid in cash are $21,100.
$\bullet$Monthly depreciation is $21,000.
$\bullet$Ignore taxes.
The net income for December would be:

Question

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: $\bullet$Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
$\bullet$Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
$\bullet$The cost of goods sold is 80% of sales.
$\bullet$The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
$\bullet$Other monthly expenses to be paid in cash are $21,100.
$\bullet$Monthly depreciation is $21,000.
$\bullet$Ignore taxes.
 The net income for December would be:

Quizplus · Accepted Answer

Budgeted Income Statement
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Dilly Farm Supply Is Located in a Small Town in the Rural