Question
Funnel Manufacturing Company has provided the follwoing information: Month Budgeted Sales January $ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Selling and Administrative Expenses
Funnel Manufacturing Company has provided the follwoing information:
| Month | Budgeted Sales |
| January | $ 76,000 |
| February | 85,000 |
| March | 92,000 |
| April | 79,000 |
Budgeted Selling and Administrative Expenses Per Month are as follows:
Wages, $15,000
Advertising, $12,000
Depreciation, $3,000
Other, 4 percent of Sales
Cost of Goods Sold is 60% of Sales. All inventory is purchased in the month it is sold. Inventory purchases are paid 2/3 in the month of purchase, the remaining 1/3 paid in the following month. The budgeted net income for February would be:
| a. | $600 | |
| b. | $7,000 | |
| c. | $5,300 | |
| d. | $3,600 |
How much cash will be paid for purchases during the month of February?
| a. | $49,200 | |
| b. | $45,600 | |
| c. | $96,600 | |
| d. | $51,000 |
What amount of Accounts Payable would be reported on the Balance Sheet at the end of February?
| a. | $28,333 | |
| b. | $34,000 | |
| c. | $17,000 | |
| d. | $54,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started