The Following Information Pertains to the October Operating Budget for Flockhart

question 79

Multiple Choice

The following information pertains to the October operating budget for Flockhart Corporation.
∙ Budgeted sales for October $100,000 and November $200,000.
∙ 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 (October 1) $20,000.
∙ Beginning inventory (October 1) $14,000.
∙ Beginning accounts payable (October 1) $60,000. (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) .
∙ No loans are outstanding on October 1
-For October,budgeted net income is:

• A)$20,000.
• B)$30,000.
• C)$40,000.
• D)None of the above is correct.

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Definitions:

Brain Stem

The brain region at the top of the spinal cord that includes the medulla and the pons.

Variations in Consciousness

Refers to the differences in awareness levels, including wakefulness, sleep, and altered states of consciousness.

Prefrontal Cortex

The front part of the frontal lobe of the brain, important for decision-making, problem-solving, control of behavior and emotions, and complex cognitive behavior.

PGO Activity

Stands for Ponto-Geniculo-Occipital waves, which are associated with REM sleep and are thought to play a role in dreaming and learning.