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The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: Sales at $450,000, all for cash. Merchandise inventory
The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:
- Sales at $450,000, all for cash.
- Merchandise inventory on October 31 was $200,000.
- The cash balance November 1 was $18,000.
- Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
- Budgeted depreciation for November is $25,000.
- The planned merchandise inventory on November 30 is $230,000.
- 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:
a. 475,000
b. 135,000
c. 450,000
d.315,000
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