Business

Elaine Burton

6 April, 23:45

Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $ 112,000 $ 70,000 $ 23,200 February 102,000 58,000 23,400 March 117,000 73,250 26,200 April 122,000 76,500 27,800 Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Morgan pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1: Cash $ 80,000 Accounts receivable * 50,000 Accounts payable 64,000 * Of this balance, $30,000 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $4,200 of depreciation. The expenses are paid in the month incurred. Morgan's budgeted cash receipts in February are: