The Following Information Pertains to the January Operating Budget for Casey

question 108

Multiple Choice

The following information pertains to the January operating budget for Casey Corporation.
-Budgeted sales for January $209,000 and February $109,000.
-Collections for sales are 60% in the month of sale and 40% the next month.
-Gross margin is 35% of sales.
-Administrative costs are $10,000 each month.
-Beginning accounts receivable is $25,000.
-Beginning inventory is $23,000.
-Beginning accounts payable is $72,000. (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) .
At the end of January, budgeted accounts receivable is ________.

• A) $43,600
• B) $83,600
• C) $125,400
• D) $165,800

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