Author Question: The following information pertains to the January operating budget for Casey Corporation. Budgeted ... (Read 122 times)

ss2343 · **on:** Mar 6, 2021

The following information pertains to the January operating budget for Casey Corporation.

∙	Budgeted sales for January $203,000 and February $101,000.

∙	Collections for sales are 60% in the month of sale and 40% the next month.

∙	Gross margin is 25% of sales.

∙	Administrative costs are $20,000 each month.

∙	Beginning accounts receivable is $28,000.

∙	Beginning inventory is $19,000.

∙	Beginning accounts payable is $75,000. (All from inventory purchases.)

∙	Purchases are paid in full the following month.

∙	Desired ending inventory is 20% of next month's cost of goods sold (COGS).

For January, budgeted net income is ________.
◦ $50,750
◦ $30,750
◦ $101,800
◦ $61,200

wergv · **Reply #1 on:** Mar 6, 2021

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