The Adams Corporation, a merchandising firm, has budgeted its activity for Novem

Question

The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

• Sales at $518,000, all for cash.
• Merchandise inventory on October 31 was $230,000.
• The cash balance November 1 was $26,600.
• Selling and administrative expenses are budgeted at $80,700 for November and are paid for in cash.
• Budgeted depreciation for November is $27,500.
• The planned merchandise inventory on November 30 is $265,300.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.
• There is no interest expense or income tax expense.

The budgeted net income for November is:

Explanation / Answer

Budgeted net Income = $ 47,200

Explanation:

Adams Corporation Budgeted Income statement For the month of November Income Sales $ 518,000 Total Revenue          518,000 Expenses Cost of Goods Sold (70% of Sales)          362,600 Selling Administrative expenses            80,700 Depreciation            27,500 Total Expenses          470,800 Net Income            47,200

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.