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8.Assume a merchandising company provides the following information from its master budget for the month of May: Cost of goods sold $ 80,000 Cash paid
8.Assume a merchandising company provides the following information from its master budget for the month of May:
Cost of goods sold | $ 80,000 |
---|---|
Cash paid for merchandise purchases | $ 75,000 |
Selling and administrative expenses | $ 35,000 |
Cash paid for selling and administrative expenses | $ 28,000 |
Retained earnings, May 1 | $ 18,000 |
Retained earnings, May 31 | $ 23,000 |
If the company does not pay any interest or dividends, what is its budgeted sales for May?
Garrison 17e Rechecks 2020-07-14
Multiple Choice
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$2,000
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$120,000
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$117,000
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$105,000
9.
ssume that a merchandising company prepared the following sales budget:
September | $ 600,000 | November | $ 800,000 |
October | $ 750,000 | December | $ 900,000 |
The following information is also available:
- Desired ending inventory is $20,000 plus 70% of the next months cost of goods sold.
- Cost of goods sold is always 60% of sales.
- Merchandise purchases are paid 30% in the current month and 70% in the next month.
- Budgeted sales each month are 70% credit and 30% cash.
- 40% of credit customers pay in the current month, 50% pay in the first month after the sale, and 10% pay in the second month after the sale.
What is the budgeted amount of accounts payable at the end of November?
Multiple Choice
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$176,600
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$345,700
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$156,600
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$365,400
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