Required information [The following information applies to the questions displayed below.) 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 84,000 Accounts receivable 144,600 Inventory 63,750 Plant and equipnent, net of depreciation 223,000 Total assets $ 514,750 Liabilities and Stockholders' Equity Accounts payable $ 84,000 Common stock 349,600 Retained earnings 81,750 Total liabilities and stockholders' equity $ 514,75 The company managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August September, and October will be $340,000, $360,000, $350,000, and $370,000, respectively, 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 25% of the cost of next month's sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $44.000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common 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? Required information The allowing information applies to estan displaystawy Hemby 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: Hanby Corporation Balance Sheet June 30 Assets Cash Accounts receivable 1:14,000 Inventory 63,756 Plant and equipment, net of depreciation 223,000 Total assets $514,750 Liabilities and Stockholders' Equity Accounts payable $ 84,80 Conron stock 349,989 Retained earnings 81,758 Total Liabilities and $514,750 stockholders' equity The compery managers have made the following additional assumptons and estimates 1 Estimated salcs for July August, Seatember, and October will be $340,000 $360,000, $350,000 and $370.000, respectively 2. All sales are on credit and all credit sales are collected. Each month's credit salcs are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at Jure 30 will be coliccted in July 3. Each month's ending inventory must equal 25% of the cost of next month's sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payabic at June 30 will be paid in July 4. Monthly selling and administrative caparses are always 544000. Each month $6,000 of mis total amount is depreciation expense and the remaining 533,000 rclatcs to expenses are paid in the month they are incurrcc. 5. The company does not plan to borrow mancy or pay or declarc clvidends during the quarter cnced September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter crded Scptember 30 How much is the Camaany's exacted Not Operating income for the quarter ending on September 307 Multiple Choice S130,500 S918.000 0 0 0 0 51,050,000 S262,500