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Use the following information to answer questions 30&31 Zee Limited provided the following information relevant to its inventory sales for December 2018 and the first quarter of 2019: Dec. 2018 Jan. 2019 Feb. 2018 March 2019 (Budgeted Actual Budgeted) (Budgete9) Cost of goods sold Credit sales Cash sales $4000 $6000 $1000 $14000 2500 7000 $ 9000 $15500 3000 S 6000 S11000 S 1200 Based on the company's collection history, 2% of credit sales are uncollectible, 40% are collected in month of sale and the remainder is collected in the following month. Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account. January 2019 budgeted purchases are $7500. The following schedule of inventory payments was provided: 60% payment in month of purchase 40% payment in month following purchase 30. Total budgeted cash receipts in February 2019 would be: A) S 8,120 B) $11,400 C) $17,320 D) 3,000 31. Total budgeted cash payments in February 2019 would be: A) $7950 B) $4950 C) $7630 D) $6630 National Cookware's cost accountant prepared the following static budget based on expected activity of 2,000 units for the October 2018 accounting period: 32. Sales Revenue Variable Costs Contribution Margin Fixed Costs Net Income $64,000 34.000 $30,000 18,000 $12,000 If National Cookware's sales manager were to prepare a flexible budget for expected activity of 2,300 units, budgeted net income on this flexible budget would be: A) $12,000 B) $21,600 C) $16,500 D) $13,800

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