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9} Isabel] Ringing LLC, a small retail store, had the following results for January. The budgets for Feb and March are also given. Jan Feb
9} Isabel] Ringing LLC, a small retail store, had the following results for January. The budgets for Feb and March are also given. Jan Feb March (ac tual) (budge t) (budge t) Sales $ 42,000 5 40,000 $ 45,000 Less cost of goods sold 21,000 20,000 22,500 Gross margin m Less selling and administrative 20,000 20,000 20,000 expenses Net operating income 8 1,000 $ 0 5 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 "selling and administrative expenses" are paid in the month of the sale. The amount of cash collected during February should be: A) $40,000 B) $32,000 C) $41,000 D) $40,400
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