answere 14 to 16

The Bandeiras Company, a merchandising firm, has budgeted its activity for December according to the following information: I. Sales at $550,000, all for cash. II. Merchandise inventory on November 30 was $300,000. III. Budgeted depreciation for December is $35,000. IV. The cash balance at December 1 was $25,000. V. Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash. VI. The planned merchandise inventory on December 31 is $270,000. VII. The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid for in cash. 14) What are the budgeted cash receipts for December? a) $137,500. b) $412,500. c)$550,000. d) $585,000. 15) What are the budgeted cash disbursements for December? a) $382,500. b) $442,500. c) $472,500. d) $477,500. 16) What is the budgeted net income for December? a) $12,500. b) $77,500. c) $107,500. d) $137,500