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Digital Enterprises is a merchandising company. All inventory sales and purchases are made on account. Here are data regarding Digital's budget for the month
Digital Enterprises is a merchandising company. All inventory sales and purchases are made on account. Here are data regarding Digital's budget for the month of May: Cash collections from customers May $135,000 May 1 May 31 Cash paid to suppliers of merchandise inventory $109,000 Accounts receivable from customer sales $16,000 $22,000 Accounts payable from inventory purchases $18,500 $11,000 Assume the balance of the merchandise inventory account does not change during the month of May, and that selling and administrative expenses are budgeted at $25,000 for the month of May. What is Digital's budgeted operating income for the month of May? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
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