What is the net income of this value listed below, Sales are budgeted at $356,000 for November,

What is the net income of this value listed below, 

 

Transcribed Image Text:

Sales are budgeted at $356,000 for November, $326,000 for December, and $306,000 for January. Collections are expected to be 90% in the month of sale and 10% in the month following the sale. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory equal to 60% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,300. Monthly depreciation is $17,200. Ignore taxes. Sales are budgeted at $356,000 for November, $326,000 for December, and $306,000 for January. Collections are expected to be 90% in the month of sale and 10% in the month following the sale. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory equal to 60% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,300. Monthly depreciation is $17,200. Ignore taxes.

Answer rating: 100% (QA)

First lets calculate the cost of goods sold COGS for each month November COGS 356000 75 267000 Decem... View the full answer