Brownsville Novelty Store Prepared the Following Budget Information for the Month

question 58

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 expense for selling and administrative expenses for the month are $48,000.
Depreciation for May is projected at $6,000.

Brownsville's budgeted operating income for May is:

• A) $72,000.
• B) $66,000.
• C) $55,200.
• D) $61,200.
• E) $43,200.

Acknowledge the disadvantages associated with flexible exchange rates.

Understand the impact of taste changes and other determinants on the value of a nation's currency.

Analyze the effects of currency appreciation and depreciation on international trade and economic conditions.

Evaluate the pros and cons of the managed float system of exchange rates.