Cullumbers, Inc. provided the following budgeted information for March through July: June March April May July Projected sales $87860 $103320 $96600 $110880 $118780 Projected merchandise purchases $68880 $77620 $63260 $55940 $61320 Inventory at end of month $10080 $11420 $9500 $10420 $12020 Cullumbers estimates that it will collect 30% of its sales in the month of sale and 70% in the month after the sale. General operating expenses are budgeted to be $26040 per month of which depreciation is $26040 of this amount Cullumber pays operating expenses in the month incurred. The income tax rate is 90%. How much is budgeted net income for May? $5119 $7060 55380 $3766 Current Attempt in Progress If there were 40000 pounds of direct materials on hand on January 1, 120000 pounds are desired for inventory at January 31, and 480000 pounds are required for January production, how many pounds of direct materials should be purchased in January 360000 pounds 600000 pounds 400000 pounds 560000 pounds