Correy Inc. reported the following information: October November December Budgeted sales $460,000 $440,000 $540,000 Budgeted purchases $240,000 $256,000 $288,000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. Cost of goods sold is 35% of sales. Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. Accounts payable is used only for inventory acquisitions. What are the cash receipts for November? Group of answer choices $490,000 $220,000 $450,000 $440,000
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Correy Inc. reported the following information:
October November December
Budgeted sales $460,000 $440,000 $540,000
Budgeted purchases $240,000 $256,000 $288,000
- All sales are on credit.
- Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
- Cost of goods sold is 35% of sales.
- Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
- Accounts payable is used only for inventory acquisitions.
What are the cash receipts for November?
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