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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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