The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: • Sales at $520,000, all for cash. • Merchandise inventory on November 30 was $235,000. • The cash balance at December 1 was $25,000. Selling and administrative expenses are budgeted at $81,000 for December and are paid in cash. • Budgeted depreciation for December is $39,000. • The planned merchandise inventory on December 31 is $265,000. • 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 $385,000 $559,000 $135,000 $520,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
• Sales at $520,000, all for cash.
• Merchandise inventory on November 30 was $235,000.
The cash balance at December 1 was $25,000.
• Selling and administrative expenses are budgeted at $81,000 for December and are paid in cash.
• Budgeted depreciation for December is $39,000.
The planned merchandise inventory on December 31 is $265,000.
• 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
$385,000
$559,000
$135,000
$520,000
Transcribed Image Text:The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: • Sales at $520,000, all for cash. • Merchandise inventory on November 30 was $235,000. The cash balance at December 1 was $25,000. • Selling and administrative expenses are budgeted at $81,000 for December and are paid in cash. • Budgeted depreciation for December is $39,000. The planned merchandise inventory on December 31 is $265,000. • 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 $385,000 $559,000 $135,000 $520,000
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