Question
The following information pertains to the January operating budget for Freds Corporation. Budgeted sales for January $200,000 and February $100,000. Collections for sales are 60%
The following information pertains to the January operating budget for Freds Corporation. Budgeted sales for January $200,000 and February $100,000. Collections for sales are 60% in the month of sale and 40% the next month. Gross margin is 30% of sales. Administrative costs are $10,000 each month. Beginning accounts receivable is $20,000. Beginning inventory is $14,000. Beginning accounts payable is $65,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending inventory is 20% of next month's cost of goods sold (COGS).
For January, budgeted cash collections are. At the end of January, budgeted accounts receivable is.
For January, budgeted cost of goods sold is.......
For January, budgeted net income is ________.
At the end of January, budgeted ending inventory is ________.
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