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?