Digital Enterprises is a merchandising company. All inventory sales and purchases are made on account. Here are data regarding Digital's budget for the month of May: Cash collections from customers Cash paid to suppliers of merchandise inventory Accounts receivable from customer sales May $135,000 $109,000 May 1 $16,000 $18,500 May 31 $22,000 $11,000 Accounts payable from inventory purchases Assume the balance of the merchandise inventory account does not change during the month of May, and that selling and administrative expenses are budgeted at $26,000 for the month of May. What is Digital's budgeted operating income for the month of May? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00). 2010- 2001-20 1004

Digital Enterprises is a merchandising company. All inventory sales and purchases are made on account. Here are data regarding Digital's budget for the month of May: Cash collections from customers Cash paid to suppliers of merchandise inventory Accounts receivable from customer sales May $135,000 $109,000 May 1 $16,000 $18,500 May 31 $22,000 $11,000 Accounts payable from inventory purchases Assume the balance of the merchandise inventory account does not change during the month of May, and that selling and administrative expenses are budgeted at $26,000 for the month of May. What is Digital's budgeted operating income for the month of May? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00). 2010- 2001-20 1004

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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