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 $39,00o. • 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:

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 $39,00o. • 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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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