Reference no: EM132530540

The following information was revealed to the January operating budget for TAWAKAL Corporation.

1. Budgeted sales for January $100,000 and February $200,000.
2. Collections for sales are 60% in the month of sale and 40% the next month.
3. Gross margin is 30% of sales.
4. Administrative costs are $10,000 each month
5. Beginning accounts receivable is $20,000.
6. Beginning inventory is $14,000.
7. Beginning accounts payable is $60,000. (All from inventory purchases.)
8. Purchases are paid in full the following month.
9. Desired ending inventory is 20% of next month's cost of goods sold (COGS).

Question 1: Calculate budgeted cash collections For January ?

Question 2: Calculate, budgeted accounts receivable At the end of January ?

Question 3: Calculate budgeted cost of goods sold For January ?

Question 4: Calculate budgeted net income For January ?

Question 5: Calculate budgeted cash payments for purchases For January ?

Question 6: Calculate budgeted ending inventory At the end of January