Author Question: The following information pertains to the January operating budget for Casey Corporation. Budgeted ... (Read 144 times)

jlmhmf · **on:** Mar 6, 2021

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

∙	Budgeted sales for January $206,000 and February $109,000.

∙	Collections for sales are 50% in the month of sale and 50% the next month.

∙	Gross margin is 25% of sales.

∙	Administrative costs are $19,000 each month.

∙	Beginning accounts receivable is $29,000.

∙	Beginning inventory is $14,000.

∙	Beginning accounts payable is $74,000. (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).

At the end of January, budgeted ending inventory is ________.
◦ $5,450
◦ $16,350
◦ $21,800
◦ $30,350

yasmina · **Reply #1 on:** Mar 6, 2021

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