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The Ellis Company has budgeted its activity for September according to the following information: Sales are budgeted at $392,000 and all sales are for cash. All purchases of merchandise inventory are for cash. Merchandise inventory was $150,000 on August 31 and the planned merchandise inventory on September 30 is $140,000. All merchandise is sold at 40% above cost. The selling and administrative expenses are budgeted at $92,000 for the month. All of these expenses are paid for in cash except for depreciation of $12,000.

78. The budgeted net income for September is: A) $20,000 B) $143,200 C) $112,000 D) $64,800 Answer: A Level: Medium LO: 9 79. The budgeted cash disbursements for September are: A) $140,000 B) $270,000 C) $350,000 D) $362,000