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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. $75,000.
D. $50,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9419553

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