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The following budgeted information is collected for a merchandising company: Budgeted sales (all on...

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Accounting

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The following budgeted information is collected for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $250,000, $220,000, and $200,000, respectively. Cash collections of sales are expected to be 75% in the month of sale and 23% in the month following the sale. The remainder of the sales is expected to be uncollectible. The cost of goods sold is always 65% of sales. Each month's ending inventory equals 20% of next month's cost of goods sold. 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. Monthly selling and administrative expenses that are paid in cash in the month incurred total $20,500. Monthly depreciation expense is $20,000. Dividends of $5,000 to be declared in December and paid in Janauary. The expected cash collections from customers in December are: O $222,500 O $220,000 O $250,000 O $227,500 The ending balance of Accounts Payable for December is: O $84,240 O $95,160 O $140,400 O $56.160 The expected net operating income for December is: O $36,500 O $47,100 O $32.100 O $56,500

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