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    The budgeted net income

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    The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:

    ? Sales were at $450,000, all for cash.
    ? Merchandise inventory on October 31 was $200,000.
    ? The cash balance on November 1 was $18,000.
    ? Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
    ? Budgeted depreciation for November is $25,000.
    ? The planned merchandise inventory on November 30 is $230,000.
    ? The cost of goods sold is 70% of the selling price.
    ? All purchases are paid for in cash.

    The budgeted net income for November is

    A. $135,000.

    B. $68,000.

    C. $50,000.

    D. $75,000.

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    Net Income = Sales - cost of goods sold - selling and ...

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    This solution helps problems involving net income.