Dilly Farm Supply is located in a small town in the rural west. Data regarding...
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Accounting
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: - Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January. - Collections are expected to be 65% in the month of sale and 35% in the month following the sale. - The cost of goods sold is 80% of sales. - 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. - Other monthly expenses to be paid in cash are $21,100. - Monthly depreciation is $21,000. - Ignore taxes. Retained earnings at the end of December would be: Multiple Choice $325,100 $311,400 $353,400 $347,200
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