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Assume a merchandising companys estimated sales for January, February, and March are $104,000, $124,000, and $114,000, respectively. Its cost of goods sold is always 60%

Assume a merchandising companys estimated sales for January, February, and March are $104,000, $124,000, and $114,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 15% of next months cost of goods sold. It pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Multiple Choice

  • $66,990

  • $63,990

  • $69,990

  • $68,990

Assume a merchandising company provides the following information from its master budget for the month of May:

Sales $ 226,000
Cost of goods sold $ 79,000
Cash paid for merchandise purchases $ 74,000
Selling and administrative expenses $ 34,000
Cash paid for selling and administrative expenses $ 33,400

What is the budgeted net operating income?

Multiple Choice

  • $128,600

  • $113,000

  • $39,000

  • $5,600

Assume a company provided the following information:

Gross margin percentage 40 %
Sales $ 475,000
Inventory balance, beginning of the year $ 20,000
Inventory balance, end of the year $ 30,000
Net income $ 10,000

The inventory turnover is closest to:

Garrison 17e Rechecks 2020-10-09

Multiple Choice

  • 10.

  • 14.

  • 11.

  • 17.

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