Reference no: EM132744881

Question - ProphetMax, a merchandising firm, has budgeted its activity for November according to the following information:

Sales at $450,000, all for cash

Merchandise inventory on October 31 was $200,000.

The cash balance November 1 was $18,000.

Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.

Budgeted depreciation for November is $25,000.

The planned merchandise inventory on November 30 is $230,000.

The cost of goods sold is 70% of the selling price.

All purchases are paid for in cash.

There is no interest expense or income tax expense.

Required - What is the budgeted net income for November.