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
D. $75,000.© BrainMass Inc. brainmass.com June 4, 2020, 1:09 am ad1c9bdddf
Net Income = Sales - cost of goods sold - selling and ...
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