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Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $ 1 2 9 , 0 0 0 $ 8 7 ,
Morgan Company's budgeted income statement reflects the following amounts:
Sales Purchases Expenses
January $ $ $
February
March
April
Sales are collected in the month of sale, in the month following sale, and in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year.
Morgan pays for all purchases in the month following purchase and takes advantage of a discount. The following balances are as of January :
Cash $
Accounts receivable
Accounts payable
Of this balance, $ will be collected in January and the remaining amount will be collected in February.
The monthly expense figures include $ of depreciation. The expenses are paid in the month incurred.
Morgans budgeted cash receipts in February are:
Multiple Choice
$
$
$
$
$
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