Recent Posts • Latest Topics • Unanswered Questions

KAB Incorporated, a small retail store, had the following results for May. The budgets for June and ...

whitywhite11

wrote...

Go to Answer

Posts: 138

Rep:

A year ago

KAB Incorporated, a small retail store, had the following results for May. The budgets for June and ...

KAB Incorporated, a small retail store, had the following results for May. The budgets for June and July are also given.

	May (actual)	June (budget)	July (budget)
Sales	$ 42,000	$ 40,000	$ 45,000
Less cost of goods sold	21,000	20,000	22,500
Gross margin	21,000	20,000	22,500
Less selling and administrative expenses	20,000	20,000	20,000
Net operating income	$ 1,000	$ 0	$ 2,500

Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "selling and administrative expenses" are paid in the month of the sale.

The cash disbursements during June for goods purchased for sale and for selling and administrative expenses should be:

▸ $40,000

▸ $41,000

▸ $42,500

▸ $43,500

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

Read 63 times

1 Reply

Report

Replies

Answer verified by a subject expert

dreamnluv

wrote...

Posts: 158

Rep:

A year ago

More solutions for this book are available here

Report

Related Topics

whitywhite11 Author

wrote...

A year ago

Thanks

lolaww

wrote...

Yesterday

Correct

foxrcng11

wrote...

2 hours ago

Thanks

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

990 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

348

1357

Your Opinion

Previous poll results: Do you trust social media networks with protecting your privacy?

The Toxic Skin and Fungi Defense

Strange Ingredients Lurking in Doritos Chips

Courses by Biology Forums

It's sore throat season, why does my mucus have red spots?

Bonobos, Chimpanzees, and the 98% DNA Link

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.