Harden, Inc., has budgeted sales in units for the next five months as.docx - Harden Inc has budgeted sales in units for the next five months as follows

Harden, Inc., has budgeted sales in units for the next five months as.docx

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Harden, Inc., has budgeted sales in units for the next five months as follows: June July August September October 8,200 units 6,500 units 8,300 units 8,000 units 6,100 units Past experience has shown that the ending inventory for each month should be equal to 15% of the next month's sales in units. The inventory on May 31 contained 1,230 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be: Multiple Choice 1,200 units 915 units oooo 1,230 units 1,245 units Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: 16 Sales are budgeted at $248,000 for November, $288,000 for December, and $220,000 for January Collections are expected to be 60% in the month of sale and 40% in the month following the sale. The cost of goods sold is 75% of
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Unformatted text preview: � 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 $17,500. Monthly � depreciation is $20,000. Ignore taxes. $ Balance Sheet � October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 20,000 79,500 130,200 976,000 $1,205,700 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 244,000 745,000 216,700 $1,205,700 The difference between cash receipts and cash disbursements for December would be: Multiple Choice $47,500 $88,000 Oo oo O $33,000 $27,500...
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