Dilbert Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:
- Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January.
- Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible.
- The cost of goods sold is 65% of sales.
- The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise is made in the month following the purchase.
- Other monthly expenses to be paid in cash are $20,300.
- Monthly depreciation is $20,000.
- Ignore taxes.
46. Expected cash collections in December are:
47. The cost of ...
This solution gives calculations for expected cash, cost of purchases, cash disbursements, and excess (deficiency) of cash.