1 OneLogin M Question 23 - MIDTERM EXAM - Connect EXAM i Saved Help Save & TB MC Qu. 9-91 Morgan Company's budgeted income statement... Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $125, 000 $83, 000 $24,500 February 115, 000 71, 000 24, 700 March 130, 000 86, 250 27, 500 April 135, 000 89, 500 29, 100 Sales are collected 50% in the month of sale, 20% in the month following sale, and 29% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Morgan pays for all purchases in the month following purchase and takes advantage of a 1% discount. The following balances are as of January 1: Cash $93, 000 Accounts receivable* 63, 000 Accounts payable 77, 000 *Of this balance, $25,200 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $5,500 of depreciation. The expenses are paid in the month incurred. Morgan's expected cash balance at the end of January is: FEB MacBook Air