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.