44. The Stacy Company makes and sells a single product, Product R. Budgeted sales for April are $300,000. Gross margin is budgeted at 30% of sales dollars. If the net income for April is budgeted at $40,000, the budgeted selling and administrative expenses are: A. $50,000. B. $78,000. C. $102,000. D. $133,333.

KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given.

	May (actual)	June (budget)	July (budget)
Sales	$42,000	$40,000	$45,000
Cost of sales	21,000	20,000	22,500
Gross margin	21,000	20,000	22,500
Operating expenses	20,000	20,000	20,000
Operating income	$1,000	$0	$2,500

Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "operating expenses" are paid in the month of the sale.

45. The amount of cash collected during the month of June should be: A. $32,000. B. $40,000. C. $40,400. D. $41,000.

46. The cash disbursements during the month of June for goods purchased for resale and for operating expenses should be: A. $40,000. B. $41,000. C. $42,500. D. $43,500.