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98) Assume a merchandising company provides the following information from its master budget for the month of May: Sales $ 136,000 Cash paid for merchandise
98)
Assume a merchandising company provides the following information from its master budget for the month of May:
Sales | $ | 136,000 | |
Cash paid for merchandise purchases | $ | 90,000 | |
Selling and administrative expenses | $ | 30,000 | |
Accounts payable, May 1st | $ | 23,400 | |
Accounts payable, May 31st | $ | 31,000 | |
If the company maintains no beginning or ending merchandise inventory and makes all of its inventory purchases on account, what is the budgeted net operating income for May?
Multiple Choice
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$31,000
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$8,400
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$16,800
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$39,400
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