The planned merchandise inventory on november 30 is 265000


Question - The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

  • Sales at $520,000, all for cash.
  • Merchandise inventory on October 31 was $235,000.
  • The cash balance November 1 was $25,000.
  • Selling and administrative expenses are budgeted at $81,000 for November and are paid for in cash.
  • Budgeted depreciation for November is $39,000.
  • The planned merchandise inventory on November 30 is $265,000.
  • The cost of goods sold is 70% of the selling price.
  • All purchases are paid for in cash.
  • There is no interest expense or income tax expense.

Calculate the budgeted cash receipts for November?

$385,000

$520,000

$135,000

$559,000

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Accounting Basics: The planned merchandise inventory on november 30 is 265000
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