Handy Hardware is a retall hardware store. Information about the store's operations follows.
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November sales amounted to $
Sales are budgeted at $ for December and $ for January
Collections are expected to be percent in the month of sale and percent in the month following the sale. Two percent of sales are expected to be uncollectible. Bad debts expense is recognized monthly.
The store's gross margin is percent of its sales revenue.
A total of percent of the merchandise for resale is purchased in the month prior to the month of sale, and percent is purchased in the month of sale. Payment for merchandise is made in the month following the purchase.
Other monthly expenses pald in cash amount to $
Annual depreciation is $
The company's balance sheet as of November Is as follows:
HANDY HARDWARE, INC.
Balance Sheet
November
Assets
Required:
Compute the budgeted cash collections for December
Compute the budgeted Income loss before Income taxes for December x
Compute the projected balance in accounts payable on December x