The Adams Corporation, a merchandising firm, has budgeted its activity for November
Question # 00249432
Posted By:
Updated on: 04/12/2016 10:39 AM Due on: 05/12/2016
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. |
| The budgeted cash receipts for November are: |
$385,000
$520,000
$135,000
$559,000
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Rating:
/5
Solution: The Adams Corporation, a merchandising firm, has budgeted its activity for November