20-23

20.Assume a merchandising company provides the following information from its master budget for the month of May:

Sales	$	120,000
Cost of goods sold	$	80,000
Selling and administrative expenses	$	35,000

What is the budgeted gross margin?

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Which of the following statements is true with respect to a budgeted balance sheet? Multiple Choice O Beginning retained earnings + net income dividends = ending retained earnings. Beginning retained earnings - net income - dividends = ending retained earnings. O Beginning retained earnings + net income + dividends = ending retained earnings. Beginning retained earnings - net income + dividends = ending retained earnings