10 Marcie sells books in Fargo Nonh Dakota Data regarding he

10 Marcie sells books in Fargo, Nonh Dakota. Data regarding her store\'s operations follow Sales budget NovemberD DecemberJanuary otal sales S 400,000 S 375,000 $420,000 Collection schedule Month of sale Next montlh Uncollectible 70% 26% The cost of goods sold is 4% 50% of sales · Other monthly expenses to be paid in cash are $25,000. Monthly depreciation is $15,000. 60% of the purchase is paid for in the month of purchase, the remainder is paid in the following month. Marcie declared a special dividend of S10.000 on November 5 to be paid on Dec. 15. * Net income for November would be: A S104,000 $134.000 C. $160.000 $159,000 $144,000 B. ?an be Loll. 2 9 o0,o0 s o0 PrtScn End 8

Solution

November Total Sales                400,000.00 Less:Cost of goods sold -             200,000.00 Gross Profit                200,000.00 Less:Other expenses -               25,000.00 Cash profit                175,000.00 Less:uncollectible -               16,000.00 Less:Depreciation -               15,000.00 Net Income                144,000.00 Dividend is not required to be adjusted for calculating net income