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Business, 24.12.2020 16:10 fheight01

Sales are budgeted at $310,000 for November, $330,000 for December, and $230,000 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 70% of sales. Lmypuu477 desires to have an ending merchandise inventory at the end of each month equal to 90% 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 $23,100. Monthly depreciation is $31,000. Ignore taxes. Balance Sheet October 31 Assets Cash $ 36,500 Accounts receivable 87,000 Merchandise inventory 195,300 Property, plant and equipment, net of $624,000 accumulated depreciation 925,000 Total assets $ 1,243,800 Liabilities and Stockholders' Equity Accounts payable $ 259,000 Common stock 760,000 Retained earnings 224,800 Total liabilities and stockholders' equity $ 1,243,800 Q: What is the cost of December merchandise purchases

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Sales are budgeted at $310,000 for November, $330,000 for December, and $230,000 for January. Collec...

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