Marigold Corp. reported the following information for 2022: October November December $420000 $380000 $470000 $260000 $196000 $228000 Budgeted sales Budgeted purchases • 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. . • Marigold 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. How much cash will Marigold receive during November? O $380000 O $190000 O $425000 O $400000
Marigold Corp. reported the following information for 2022: October November December $420000 $380000 $470000 $260000 $196000 $228000 Budgeted sales Budgeted purchases • 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. . • Marigold 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. How much cash will Marigold receive during November? O $380000 O $190000 O $425000 O $400000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Marigold Corp. reported the following information for 2022:
October November December
$420000 $380000
$470000
$260000 $196000
$228000
Budgeted sales
Budgeted
purchases
• 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.
.
• Marigold 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.
How much cash will Marigold receive during November?
O $380000
O $190000
O $425000
O $400000
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