Assume the following budgeted information for a merchandising company. - Budgeted sales (all on credit)...
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Assume the following budgeted information for a merchandising company. - Budgeted sales (all on credit) for November, December, and January are $252,000,$222,000, and $213,000, respecuvely - Cash collectuons related to credit sales are expected to be 70 s in the month of sale, 30 s in the month following the sale. - The cost of goods sold is 65% of sales: - Each month's ending inventory equals 15% of next month's cost of goods sold - 40% of each month's merchandise purchases are pald in the current month and the remainder is paid in the following month - Monthly selling and administrattve expenses that are paid in cash in the month incurred total $2.7000 - Monthly depreciation expense is $11,000. The budgeted net operoting income for December would be Multiple Choice $50700 $26,688 $37.68% 539700
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