Carla Vistas, Inc. provided the following budgeted information for March through July:   March April May June July Projected sales $100400 $118080 $110400 $126720 $135760 Projected merchandise purchases $78720 $88720 $72320 $63920 $70080 Inventory at end of month $11520 $13040 $10880 $11920 $13760 Carla Vistas estimates that it will collect 30% of its sales in the month of sale and 70% in the month after the sale. General operating expenses are budgeted to be $29760 per month of which depreciation is $29760 of this amount. Carla Vista pays operating expenses in the month incurred. The income tax rate is 30%. How much is budgeted net income for May? a. $8080. b. $6160. c. $4312. d. $5858.

Xcom is a small retailer that sells phone cases. The following estimates are available for the coming period: Month Budgeted Sales (Units) April 40,000 May 50,000 June 44,000 Notes: Opening cash balance for the month of May is expected to be $9,250. Inventory policy- ending inventory of finished goods equal to 25% of that month’s sales. Budgeted selling price per case- $40 Purchase price per case - $10 (purchase volume greater than 30,000 cases per month will receive a 5% discount). Collections from customers: 80% in the month of sale 20% one month after the sale Monthly operating expenses are budgeted at: Marketing $20,000 per month Sales commission (5% of Total Sales Collection for the month) Administration cost per month is $18,000. This includes depreciation of $2,000 per month. All expenses and purchases are paid in the month incurred unless otherwise specified.   Required: For the month of May, you have been asked to prepare: Purchases…

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 27,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $2. Budgeted sales units. Units to purchase July 180,000 200,250 August 315,000 308,250 September 270,000 259,500 Prepare the merchandise purchases budgets for the months of July, August, and September. WALKER COMPANY Merchandise Purchases Budget July August September Next period budgeted sales units Ratio of inventory to future sales 0 0 0 Total required units Units to purchase Cost per unit Cost of merchandise purchases

Tasty Foods expects to have 20,000 units of finished goods inventory on hand on March 31 and reports the following expected sales (in units) for the months of April through July: April 120,000 May June July 130,000 140,000 120,000 At the end of each month the company desires its ending finished goods inventory to be 20% of the next month's projected sales (in units). The budgeted production (in units) for Tasty Foods for May should be: A. 104,000. B. 128,000. C. 130,000. D. 132,000. E. 138,000. A O B C D E