Kohl's Department Store and Target Corporation buy their clothing from Form Fitters Inc., a merchandising firm, that
Question:
Kohl's Department Store and Target Corporation buy their clothing from Form Fitters Inc., a merchandising firm, that has budgeted\ its activity for December according to the following information:\ Sales at
$550,000
, all for cash\ Merchandise inventory on November 30th was
$300,000
\ The cash balance on December 1st was
$25,000
\ Selling and administrative expenses are budgeted at
$60,000
for December and are paid in cash\ Budgeted depreciation for December is
$35,000
\ The planned merchandise inventory on December 31 st is
$270,000
\ The Cost of Goods Sold is
75%
of the sales price\ All purchases are paid for in cash\ There is no interest expense or income tax expense\ The budget Net Income for December is closest to:
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill