Question
The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: Sales at $530,000, all for cash. Merchandise inventory
The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
Sales at $530,000, all for cash.
Merchandise inventory on November 30 was $240,000.
The cash balance at December 1 was $26,000.
Selling and administrative expenses are budgeted at $84,000 for December and are paid in cash.
Budgeted depreciation for December is $41,000.
The planned merchandise inventory on December 31 is $270,000.
The cost of goods sold is 70% of the sales price.
All purchases are paid for in cash.
There is no interest expense or income tax expense.
The budgeted cash receipts for December are:
Multiple Choice
$395,000
$530,000
$571,000
$135,000
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