The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $100,000
Question:
The following information pertains to the January operating budget for Casey Corporation.
Budgeted sales for January $100,000 and February $200,000.
Collections for sales are 60% in the month of sale and 40% the next month.
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 $60,000. (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)
A) For January, budgeted cash collections are ________.
B) At the end of January, budgeted accounts receivable is ________.
C) For January, budgeted cost of goods sold is ________ .
D) For January, budgeted net income is ________.
E) At the end of January, budgeted ending inventory is ________.
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan