Barger Company Had the Following Information at December 31

question 174

Multiple Choice

Barger Company had the following information at December 31: If the cost of goods manufactured during the year amounted to $1,330,000 and annual sales were $1,996,000, how much is the amount of gross profit for the year?

• A) $666,000
• B) $606,000
• C) $1,306,000
• D) $690,000

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, used for managing liquidity and ensuring a company can meet its obligations.

Budgeted Cash Receipts

An estimation of the cash a company expects to receive within a certain period, based on projected sales or revenue.

Budgeted Cash Disbursements

An estimate of the total amount of cash an organization plans to pay out over a specified period, including operating expenses and purchase of assets.

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet production goals.