Oiner montniy expenses to de paia în casn are 325,700. Monthly depreciation is $18,000. Ignore taxes. The net income for December would be: O$55,300 O $59,300 O $47,200 O $73,300
Oiner montniy expenses to de paia în casn are 325,700. Monthly depreciation is $18,000. Ignore taxes. The net income for December would be: O$55,300 O $59,300 O $47,200 O $73,300
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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![Other monthly expenses to be paid in cash are 325,700.
Monthly depreciation is $18,000.
Ignore taxes.
The net income for December would be:
O$55,300
O$59,300
O $47,200
O $73,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe80ac994-20a8-4189-8d40-761a5e1f3afd%2Fbb4c0646-2a04-4cff-9dfa-f5005f851a77%2Fis4ojss_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Other monthly expenses to be paid in cash are 325,700.
Monthly depreciation is $18,000.
Ignore taxes.
The net income for December would be:
O$55,300
O$59,300
O $47,200
O $73,300
![Acme Company sells lumber and general building supplies to
building contractors. Data regarding the store's operations
follow:
Sales are budgeted at $360,000 for November, $330,000 for December, and
$310,000 for January.
Collections are expected to be 90% in the month of sale and 10% in the month
following the sale.
The cost of goods sold is 70% of sales.
The company desires to have an ending merchandise inventory equal to 70%
of the following 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 $25,700.
Monthly depreciation is $18,000.
Ignore taxes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe80ac994-20a8-4189-8d40-761a5e1f3afd%2Fbb4c0646-2a04-4cff-9dfa-f5005f851a77%2Fgqg3q9q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Acme Company sells lumber and general building supplies to
building contractors. Data regarding the store's operations
follow:
Sales are budgeted at $360,000 for November, $330,000 for December, and
$310,000 for January.
Collections are expected to be 90% in the month of sale and 10% in the month
following the sale.
The cost of goods sold is 70% of sales.
The company desires to have an ending merchandise inventory equal to 70%
of the following 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 $25,700.
Monthly depreciation is $18,000.
Ignore taxes.
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