The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:Sales at $550,000, all for cash.Merchandise inventory on November 30 was $300,000.The cash balance at December 1 was $25,000.Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash.Budgeted depreciation for December is $35,000.The planned merchandise inventory on December 31 is $270,000.The cost of goods sold is 75% of the sales price.All purchases are paid for in cash.There is no interest expense or income tax expense.The budgeted net income for December is:

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The Answer of The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:Sales at $550,000, all for cash.Merchandise inventory on November 30 was $300,000.The cash balance at December 1 was $25,000.Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash.Budgeted depreciation for December is $35,000.The planned merchandise inventory on December 31 is $270,000.The cost of goods sold is 75% of the sales price.All purchases are paid for in cash.There is no interest expense or income tax expense.The budgeted net income for December is:

The Bandeiras Corporation, a Merchandising Firm, Has Budgeted Its Activity