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

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!

ATTACHMENT PREVIEW

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

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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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