Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below Hamby Corporation Balance Sheet June 30 Assets Cash $91.000 Accounts receivable 130.000 Inventory 36,000 plant and equipment, net of depreciation 213,00 Total assets 5 473, de Liabilities and Stockholders Equity Accounts payable 574.00 Common stock 328,000 Retained earning 21,000 Total liabilities and stockholders' equity $ 47,00 The company managers have made the following additional assumptions and estimates 1. Estimated sales for July August September and October will be $240.000 $260,000 $250,000 and $270.000, respectively 2. All sales are on credit and credit sales are collected Each month credit sales are collected 35% in the month of sale and 65 in the month following the sale. All of the accounts receivable at kune 30 will be collected in July 3. Each month's ending inventory must equal 25% of the cost of next month. The cost of goods sold is 00 of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining on the month to lowing the purchase All of the accounts payable at June 30 will be paid in July 4 Monthly selling and administrative expenses are aways 544000. Each month $8.000 of this total amount is depreciation expense and the remaining $36.000 relates to expenses that are paid in the month they are incurred 5. The company does not an to borrow money or pay or decadiends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the cater ended September 30 How much is the companys expected Net Operating income for the quarter ending on Senteme: 302 stock or repurchase its own stock during the quarter ended September 30. how much is the Company's expected Net Operating Income for the quarter ending on September 30? Multiple Choice $618,000 $300,000 $168,000 $750,000 Saved Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below. Help Sex $ 91,000 Hanby Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Retained caring Total and stars uity 36.000 213,000 $74.00 325.000 71.000 The company managers have made the following additional assumptions and estimates 1 Essmated sales for July August September, and October will be $240.000. 5260,000 $250.000 and $270.000, respectively 2. All sales are on creat and all credit sies are collected Each months credit sales are collected 356 in the month of sale and 65 in the month for the sale. All of the accounts receivable atreo be colected July Each month's ending inventory must equal 25 of the cost of next moms sales. The cost of goods sold is 60% of sales. The comoary pays for 40% of its archandise purchases in the month of the purchase and the remaining 60 the month following the purchase. All of the accounts payable at June 30 will be paid in 4 Monthly seng and adventes away 544.000 Each mom $8.000 of this total amount is depreciation expense and the 536.000 relates to Dentes that are in the forth they are cu 5. The common does not to bowy pay or are divide an equatrended September 30. The company does not an easycoon sockereiche strong treatended Sepete 20 Moniche corrected to Recancer Setter 20 Multiple Choice O $256,500 $169,000 $87,500 $162.500
