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Mathematics, 09.03.2021 17:20 020020
The Adams Company, 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 31 is £230,000.
* The cost of goods sold is 70% of the selling price.
* All purchases are paid for in cash.
The budgeted cash receipts for November are:
A. £315,000
B. £450,000
C. £135,000
D. £475,000
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Answers: 2
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