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rojected sales rojected merchandise purchases nventory at end of month March April May June July $104100 $123100 $115000 $132000 $141200 $82100 $92100 $75600 $66800 $72500 $12200 $13400 $11300 $12800 $14700 • Sunland estimates that it will collect 20% of its sales in the month of sale and 80% in the month after the sale. • General operating expenses are budgeted to be $30700 per month of which depreciation is $2700 of this amount. Sunland pays operating expenses in the month incurred. • The income tax rate is 40%. ow much is budgeted net income for May? Ⓒ$6290. $8600. $3960. Ⓒ$6600.

rojected sales rojected merchandise purchases nventory at end of month March April May June July $104100 $123100 $115000 $132000 $141200 $82100 $92100 $75600 $66800 $72500 $12200 $13400 $11300 $12800 $14700 • Sunland estimates that it will collect 20% of its sales in the month of sale and 80% in the month after the sale. • General operating expenses are budgeted to be $30700 per month of which depreciation is $2700 of this amount. Sunland pays operating expenses in the month incurred. • The income tax rate is 40%. ow much is budgeted net income for May? Ⓒ$6290. $8600. $3960. Ⓒ$6600.

FINANCIAL ACCOUNTING
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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Sunland, Inc. provided the following budgeted information for March through July: March April May June July $104100 $123100 $115000 $132000 $141200 $82100 $92100 $75600 $66800 $72500 $13400 $11300 $12800 $14700 $12200 Projected sales Projected merchandise purchases Inventory at end of month • Sunland estimates that it will collect 20% of its sales in the month of sale and 80% in the month after the sale. • General operating expenses are budgeted to be $30700 per month of which depreciation is $2700 of this amount. Sunland pays operating expenses in the month incurred. • The income tax rate is 40%. How much is budgeted net income for May? $6290. $8600. $3960. $6600.
Transcribed Image Text:Sunland, Inc. provided the following budgeted information for March through July: March April May June July $104100 $123100 $115000 $132000 $141200 $82100 $92100 $75600 $66800 $72500 $13400 $11300 $12800 $14700 $12200 Projected sales Projected merchandise purchases Inventory at end of month • Sunland estimates that it will collect 20% of its sales in the month of sale and 80% in the month after the sale. • General operating expenses are budgeted to be $30700 per month of which depreciation is $2700 of this amount. Sunland pays operating expenses in the month incurred. • The income tax rate is 40%. How much is budgeted net income for May? $6290. $8600. $3960. $6600.
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