Dilbert Farm Supply is located in a small town in the rural west.Data regarding the store's operations follow: o Sales are budgeted at $260,000 for November,$230,000 for December,and $210,000 for January.
O Collections are expected to be 80% in the month of sale,19% in the month following the sale,and 1% uncollectible.
O The cost of goods sold is 65% of sales.
O The company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next 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 $20,300.
O Monthly depreciation is $20,000.
O Ignore taxes. The difference between cash receipts and cash disbursements for December would be:

Question

Dilbert Farm Supply is located in a small town in the rural west.Data regarding the store's operations follow: o Sales are budgeted at $260,000 for November,$230,000 for December,and $210,000 for January.
O Collections are expected to be 80% in the month of sale,19% in the month following the sale,and 1% uncollectible.
O The cost of goods sold is 65% of sales.
O The company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next 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 $20,300.
O Monthly depreciation is $20,000.
O Ignore taxes.  The difference between cash receipts and cash disbursements for December would be:

Quizplus · Accepted Answer

Cash collections for December:
 11eaa3fe_327c_edbf_908b_59086efda066_TB2461_00 Cash disbursements for merchandise in December:
 11eaa3fe_327d_14d0_908b_03e72844acac_TB2461_00 The company pays for its purchases in the month following purchase,so the cash disbursements in December would equal the November purchases of $157,300.
Total cash disbursements in December:
 11eaa3fe_327d_3be1_908b_bb67d1a1ceff_TB2461_00

Dilbert Farm Supply Is Located in a Small Town in the Rural