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# Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at \$220,000 for...

I have a number of questions. I have the answers already, but need to know how to arrived at the answers. Can you show me the calculations? I need these by Tuesday night. Let me know if you can do this. Thanks!

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at \$220,000 for November, \$200,000 for December, and \$210,000 for January. • Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. • The cost of goods sold is 65% of sales. • The company desires to have an ending merchandise inventory at the end of each month equal to 50% 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 \$22,500. • Monthly depreciation is \$19,000. • Ignore taxes. 40. Expected cash collections in December are: A. \$59,400
B. \$140,000 C. \$199,400 D. \$200,000 c 41. The cost of December merchandise purchases would be: A. \$133,250 B. \$68,250 C. \$130,000 D. \$143,000 A 42. December cash disbursements for merchandise purchases would be: A. \$136,500 B. \$68,250 C. \$133,250 D. \$130,000 A 43. The difference between cash receipts and cash disbursements for December would be: A. \$17,900 B. \$22,500 C. \$40,400 D. \$62,900 C 44. The net income for December would be: A. \$40,400 B. \$22,500 C. \$47,500 D. \$28,500 B
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4 0. Expected cash collections in December are:
Particulars November December January Budgeted sales 220,000 200,000 210,000 70% collected in the same month
27% in the 2nd month 154000
76000...

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