The following information pertains to the January operating budget for Casey Corporation. . . . Gross margin is 30% of sales. • Administrative costs are $10,000 each month. . Beginning accounts receivable is $20,000. Beginning inventory is $14,000. • Beginning accounts payable is $65,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending inventory is 20% of next month's cost of goods sold (COGS). . Budgeted sales for January $200,000 and February $100,000. Collections for sales are 60% in the month of sale and 40% the next month. . . At the end of January, budgeted accounts receivable is $160,000 $80,000 $40,000 $120,000 I

The following information pertains to the January operating budget for Casey Corporation. . . . Gross margin is 30% of sales. • Administrative costs are $10,000 each month. . Beginning accounts receivable is $20,000. Beginning inventory is $14,000. • Beginning accounts payable is $65,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending inventory is 20% of next month's cost of goods sold (COGS). . Budgeted sales for January $200,000 and February $100,000. Collections for sales are 60% in the month of sale and 40% the next month. . . At the end of January, budgeted accounts receivable is $160,000 $80,000 $40,000 $120,000 I

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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