Asked by Genelyn Silva on Apr 24, 2024
The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:Sales at $550,000, all for cash.Merchandise inventory on November 30 was $300,000.The cash balance at December 1 was $25,000.Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash.Budgeted depreciation for December is $35,000.The planned merchandise inventory on December 31 is $270,000.The cost of goods sold is 75% of the sales price.All purchases are paid for in cash.There is no interest expense or income tax expense.The budgeted cash disbursements for December are:
A) $382,500
B) $442,500
C) $472,500
D) $477,500
Merchandising Firm
A business that purchases finished products and sells them to consumers without altering the state of the product.
Merchandise Inventory
Finished goods available for sale by a company, typically in a retail or wholesaling environment.
Selling Expenses
Costs associated with the marketing and sale of products or services, excluding the cost of goods sold.
- Evaluate expected sales, cash collection, and cash disbursement figures.
Learning Objectives
- Evaluate expected sales, cash collection, and cash disbursement figures.
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