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Business, 25.03.2020 05:36 tadams9922

ABC Company budgeted its activity for October 2018 from the following information: Sales are budgeted at $560,000. All sales are credit sales and a provision for doubtful accounts is made monthly at the rate of 3% of sales. Merchandise inventory was $11,000 at September 30, 2018, and an increase of $15,000 is planned for the month. All merchandise is marked up to sell at invoice cost plus 30%. Estimated cash disbursements for selling and administrative expenses for the month are $85,000. Depreciation for the month is projected at $25,000. Its projecting operating income for October 2018 is:

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