TFS Corporation, a Retail Company Selling Hotel Furniture, Has Just

TFS Corporation, a retail company selling hotel furniture, has just completed its master budget for the next fiscal year. Ending inventory is budgeted at 20% of cost of goods available for sale. Selected data from that process appear in the table below: $\begin{array}{lr}\text { Beginning inventory } & \$ 10,000 \\\text { Budgeted purchases } & 25,000 \\\text { Expected revenue } & 150,000 \\\text { Inflows of cash } & 120,000 \\\text { Support departments costs } & 30,000 \\\text { Total cash outflows } & 80,000\end{array}$ Which of the following amounts will be subtracted from gross profit on TFS' budgeted income statement?

A) $30,000
B) $80,000
C) $14,000
D) $110,000