Dilom Farm Supply Is Located in a Small Town in the Rural

question 121

Multiple Choice

Dilom 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 55% in the month of sale, 40% in the month following the sale, and 5% uncollectible.
The cost of goods sold is 80% of sales.
The company purchases 50% of its merchandise in the month prior to the month of sale and 50% 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 $21,700.
Monthly depreciation is $17,000.
Ignore taxes.
-Retained earnings at the end of December would be:

• A) $342,000
• B) $362,600
• C) $337,800
• D) $338,100

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Definitions:

Egocentrism

A cognitive bias where an individual is unable to see a situation from another person’s point of view, common in early childhood development.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

Conservation

Conservation in cognitive psychology relates to the understanding that certain properties of objects, like volume or number, remain the same despite changes in their form or appearance.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a concept developed in infancy.