80.2K

Verified Solution

Link Copied!

Q#1 HASF and company is a retails hardware store information about the store operations follows
November 2017 sales	400000
Sales are budgeted 440,000 for December and 4 00,000 for January 2018
Credit sales typically are 60% of total sales Collection are expected to 50% in the month of sales and 50% in the month following sales
Gross profit margin 40%
A total of 60% of the merchandise for resale its purchase in the month prior to the month of sales and 40% is purchase in the month of sales payment for merchandise is made in the month following the purchase
Other month expenses paid in cash amount 45,200
Annual depreciation is 432,000
The company balance sheet as of November 30 2017 is as follow
HASF Hardware inc
Balance sheet
As on November 30 2018
Cash	44,000
A/c receivable	152,000
Inventory	280,000
Property plant and equipment	1,724,000
Total assets	2,200,000
a/c payable	324,000
common stock	1,590,000
Retained earning	286,000
Total liabilities and owner equity	2,200,000
Amount of credit sales in Dec
Amount of cash sales in Dec
Amount of cash will be received from Nov sales
Amount of cash will be received from Dec credit sales
Total amount of cash will be received in Dec
Value of Purchase in the month of Dec
Cash disburstment for inventory purchase in Dec
Total cash disburstment in Dec
Beginning cash balance in Dec
total cash will be available before disbursment
Excess or Deficiency balance at Dec 31
Value of cost of goods sold in Dec 31
Gross profit in Dec 31
net profit in Dec 31

Answer & Explanation Solved by verified expert

See Answer