General operating expenses are budgeted to be 31000 per

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Reference no: EM13573119

Heaters, Inc. provided the following budgeted information for March through July:

	March	April	May	June	July
Projected sales	$104,600	$123,000	$115,000	$132,000	$141,400
Projected merchandise purchases	$82,000	$92,400	$75,300	$66,600	$73,000
Inventory at end of month	$12,000	$13,600	$11,300	$12,400	$14,300

·Heaters 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 $31,000 per month of which depreciation is $3,000 of this amount. Heater pays operating expenses in the month incurred.
·The income tax rate is 30%.How much is budgeted net income for May?

Reference no: EM13573119

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