2) The following information pertains to the January operating budget for Casey Corporation. - Budgeted...
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Accounting
2) The following information pertains to the January operating budget for Casey Corporation. - Budgeted sales for January $207,000 and February $100,000. - Collections for sales are 40% in the month of sale and 60% the next month. - Gross margin is 30% of sales. - Administrative costs are $16,000 each month. - Beginning accounts receivable is $25,000. - Beginning inventory is $19,000. - Beginning accounts payable is $68,000. (All from inventory purchases.) - Purchases are paid in full the following month. - Desired ending inventory is 25% of next month's cost of goods sold (COGS). For January, budgeted net income is: A) 562,100 (B) 546,100 C) $66,800 D) 5108,200
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