Answer the Following Questions Using the Information Below

question 19

Multiple Choice

Answer the following questions using the information below:
The following information pertains to the January operating budget for Casey Corporation.
• Budgeted sales for January $200,000 and February $100,000.
• 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 is $20,000.
• Beginning inventory is $14,000.
• Beginning accounts payable is $65,000. (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) .
-For January,budgeted net income is ________.

• A) $60,000
• B) $50,000
• C) $40,000
• D) $30,000

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Definitions:

Damage

Physical harm that impairs the value, usefulness, or normal function of something.

Danger

The possibility of harm or adverse effects resulting from exposure to hazardous situations, substances, or activities.

Vulnerability

A weakness in a system that can be exploited to compromise the system's security or functionality.

Information Resource

An information resource is any source of data and information that can be used for reference or analysis, ranging from databases and journals to informational websites.