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Answer the following questions using the information below: The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $200,000
Answer the following questions using the information below: The following information pertains to the January operating budget for Casey Corporation.
- Budgeted sales for January $200,000 and February $100,000.
- Collections for sales are 60% in the month of sale and 40% the next month.
- Gross margin is 30% of sales.
- Administrative costs are $10,000 each month.
- Beginning accounts receivable is $20,000.
- Beginning inventory is $14,000.
- Beginning accounts payable is $65,000. (All from inventory purchases.)
- Purchases are paid in full the following month.
- Desired ending inventory is 20% of next month's cost of goods sold (COGS).
For January, budgeted net income is ________.
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