Brownsville Novelty Store Prepared the Following Budget Information for the Month

question 79

Multiple Choice

Brownsville Novelty Store prepared the following budget information for the month of May:

Sales are budgeted at $360,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.
Inventory was $84,000 on April 30; an inventory increase of $12,000 is planned for May 31.
All inventory is marked to sell at cost plus 50 percent.
Estimated cash disbursements for selling and administrative expenses for the month are $48,000.
Depreciation for May is projected at $6,000.

Brownsville's budgeted cost of inventory purchases for May is:

• A) $120,000.
• B) $180,000.
• C) $198,000.
• D) $252,000.
• E) $240,000.

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Definitions:

Scaffolding

An educational approach involving providing support to students or learners to help them achieve a task or understand concepts they would not be able to grasp independently.

Nurture

The practice of nurturing and fostering the progress or evolution of a person or entity.

Environmental Influences

Factors within one's surroundings that can affect behaviors, development, and attitudes, including physical, social, and cultural aspects.

Sociocultural-Graded Influences

factors that affect individuals differently based on their social class, culture, ethnicity, or interaction with the social environment.