10 Marcie sells books in Fargo, Nonh Dakota. Data regarding her store\'s operati

Question

10 Marcie sells books in Fargo, Nonh Dakota. Data regarding her store's operations follow Sales budget NovemberD DecemberJanuary otal sales S 400,000 S 375,000 $420,000 Collection schedule Month of sale Next montlh Uncollectible 70% 26% The cost of goods sold is 4% 50% of sales · Other monthly expenses to be paid in cash are $25,000. Monthly depreciation is $15,000. 60% of the purchase is paid for in the month of purchase, the remainder is paid in the following month. Marcie declared a special dividend of S10.000 on November 5 to be paid on Dec. 15. * Net income for November would be: A S104,000 $134.000 C. $160.000 $159,000 $144,000 B. ?an be Loll. 2 9 o0,o0 s o0 PrtScn End 8

Explanation / Answer

November Total Sales                400,000.00 Less:Cost of goods sold -             200,000.00 Gross Profit                200,000.00 Less:Other expenses -               25,000.00 Cash profit                175,000.00 Less:uncollectible -               16,000.00 Less:Depreciation -               15,000.00 Net Income                144,000.00 Dividend is not required to be adjusted for calculating net income

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