Question
The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: Sales at $470,000, all for cash. Merchandise inventory
The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: Sales at $470,000, all for cash. Merchandise inventory on October 31 was $210,000. The cash balance November 1 was $20,000. Selling and administrative expenses are budgeted at $66,000 for November and are paid for in cash. Budgeted depreciation for November is $29,000. The planned merchandise inventory on November 30 is $240,000. 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:
$335,000
$470,000
$135,000
$499,000
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