The Banderas Company, a merchandising firm, has budgeted its activity for December according to the following information: 1) Sales at $550,000, all for cash. 2) Merchandise inventory on November 30 was $300,000. 3) Budgeted depreciation for December is $35,000. 4) The cash balance at December 1 was $25,000. 5) Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash. 6) The planned merchandise inventory on December 31 is $270,000. 7) The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid for in cash. The budgeted cash receipts for December are: A. $137,500. B. $412,500. C. $550,000. D. $585,000.

The Banderas Company, a merchandising firm, has budgeted its activity for December according to the following information: 1) Sales at $550,000, all for cash. 2) Merchandise inventory on November 30 was $300,000. 3) Budgeted depreciation for December is $35,000. 4) The cash balance at December 1 was $25,000. 5) Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash. 6) The planned merchandise inventory on December 31 is $270,000. 7) The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid for in cash. The budgeted cash receipts for December are: A. $137,500. B. $412,500. C. $550,000. D. $585,000.

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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