question archive The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: l Sales at $450,000, all for cash
The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: l Sales at $450,000, all for cash
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The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: l Sales at $450,000, all for cash. l Merchandise inventory on October 31 was $200,000. l The cash balance November 1 was $18,000. l Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash. l Budgeted depreciation for November is $25,000. l The planned merchandise inventory on November 30 is $230,000. l The cost of goods sold is 70% of the selling price. l All purchases are paid for in cash. l There's no interest expense or income tax expense. How much are the budgeted cash receipts for November? A. $135,000 B. $450,000 C. $475,000 D. $315,000
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Answer: B. 450,000.00
Step-by-step explanation
Budgeted cash receipts are equal to to total expected collection. In the problem the budgeted cash receipts is equal to cash sales amounting 450,000.00 since there is no other expected cash inflow other than the cash sales.
