NUBD Company has budgeted its activity for October 2021 based on the following information: i. Sales are budgeted at P300,000. All sales are credit sales

NUBD Company has budgeted its activity for October 2021 based on the following information: i. Sales are budgeted at P300,000. All sales are credit sales and a provision for doubtful accounts is made monthly at the rate of 3% of sales. ii. Merchandise inventory was P70,000 at September 30, 2021 and an increase of P10,000 was planned for the month. iii. All merchandise is marked-up to sell at invoice cost plus 50%. (Gross profit rate based on cost) iv. Estimated cash disbursements for selling and administrative expenses for the month are P40,000. v. Depreciation for the month is projected at P5,000. NUBD is projecting operating income for the month of October 2021 in the amount of: a. 96,000 b. 56,000 c. 55,000 d. 46,000

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