A company's data regarding its operations follow: 1. Sales budget November $360,000 December $375,000 January $450.000 2. Collection schedule: Month of sale 70% Next month 28% Uncollectible 2% 3. The cost of goods sold is 50% of sales. 4. Other monthly expenses to be paid in cash are $21,000 5. Monthly depreclation is $15,000. 6.60% of the purchase is paid for in the month of purchase, the remainder is paid in the following month. 7. The company declared a special dividend of $10,000 on November 5 to be paid on November 30. Q. Budgeted net income for November would be: ?
A company's data regarding its operations follow: 1. Sales budget November $360,000 December $375,000 January $450.000 2. Collection schedule: Month of sale 70% Next month 28% Uncollectible 2% 3. The cost of goods sold is 50% of sales. 4. Other monthly expenses to be paid in cash are $21,000 5. Monthly depreclation is $15,000. 6.60% of the purchase is paid for in the month of purchase, the remainder is paid in the following month. 7. The company declared a special dividend of $10,000 on November 5 to be paid on November 30. Q. Budgeted net income for November would be: ?
Chapter7: Budgeting
Section: Chapter Questions
Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...
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A company's data regarding its operations follow:
1. Sales budget
November $360,000
December $375,000
January $450.000
2. Collection schedule:
Month of sale 70%
Next month 28%
Uncollectible 2%
3. The cost of goods sold is 50% of sales.
4. Other monthly expenses to be paid in cash are $21,000
5. Monthly depreclation is $15,000.
6.60% of the purchase is paid for in the month of purchase, the remainder is paid in the following month.
7. The company declared a special dividend of $10,000 on November 5 to be paid on November 30.
Q. Budgeted net income for November would be: ?
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