Old Antique Store prepared the following budget information for the month of May: • Sales are budgeted at $427,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month. • Inventory was $103,000 on April 30; an inventory increase of $17,000 is planned for May 31. • All inventory is marked to sell at cost plus 40 percent. • Estimated expense for selling and administrative expenses for the month are $67,000. • Depreciation for May is projected at $7,900. Old Antique's budgeted operating income for May is: Multiple Choice

Old Antique Store prepared the following budget information for the month of May: • Sales are budgeted at $427,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month. • Inventory was $103,000 on April 30; an inventory increase of $17,000 is planned for May 31. • All inventory is marked to sell at cost plus 40 percent. • Estimated expense for selling and administrative expenses for the month are $67,000. • Depreciation for May is projected at $7,900. Old Antique's budgeted operating income for May is: Multiple Choice

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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