KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May (actual)June (budget)July (budget) Sales$45,000$46,000$49,000 Cost of sales$20,000$21,000 $23,500 Gross margin$25,000 $21,000 $21,500 Operating expenses$19,000$19,000$19,000 Operating income$5,000$1,000$1,500 Sales are collected 75% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale. What should be the amount of cash collected during the month of June?

Multiple Choice

• $32,000

• $40,000

• $45,750

• $41,000

Answer rating: 100% (QA)

Answer ay June July Cost of Sales 21000 20000 2250... View the full answer