The Ellis Company has budgeted its activity for September according to the following information:• Sales are budgeted at P392,000 and all sales are for cash.• All purchases of merchandise inventory...

The Ellis Company has budgeted its activity for September according to the following information:• Sales are budgeted at P392,000 and all sales are for cash.• All purchases of merchandise inventory are for cash. Merchandise inventory was P150,000 on August 31 and the planned merchandise inventory on September 30 is P140,000. All merchandise is sold at 40% above cost.• The selling and administrative expenses are budgeted at P92,000 for the month. All of these expenses are paid for in cash except for depreciation of P12,000. The budgeted net income for September is:

• 20,000


• 143,200


• 112,000


• 64,800