Waterway Industries reported the following information for 2016: October November December Budgeted sales $450000 $410000 $500000 Budgeted purchases $270000 $226000 $258000 • 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. • Waterway 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 Waterway receive during November? $205000 O $410000 O $455000 $430000
Waterway Industries reported the following information for 2016: October November December Budgeted sales $450000 $410000 $500000 Budgeted purchases $270000 $226000 $258000 • 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. • Waterway 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 Waterway receive during November? $205000 O $410000 O $455000 $430000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Waterway Industries reported the following information for 2016:
October
November
December
Budgeted sales
$450000
$410000
$500000
Budgeted purchases
$270000
$226000
$258000
• 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.
• Waterway 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 Waterway receive during November?
$205000
$410000
$455000
O $430000
оо
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