Asked by Samira Saghafi on Apr 30, 2024
Verified
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 receipts for December are:
A) $412,500
B) $137,500
C) $585,000
D) $550,000
Merchandising Firm
A business entity that purchases finished goods and sells them to consumers with or without additional processing or packaging.
Merchandise Inventory
Goods or products that a company holds with the intention of selling them to customers.
Selling Expenses
Costs that are directly tied to the selling of goods and services, such as advertising, sales staff salaries, and commissions.
- Estimate budgeted revenue, cash collections, and cash expenditures.
Verified Answer
Learning Objectives
- Estimate budgeted revenue, cash collections, and cash expenditures.
Related questions
The Bandeiras Corporation, a Merchandising Firm, Has Budgeted Its Activity ...
Bries Corporation Is Preparing Its Cash Budget for January ...
Varughese Incorporated Is Working on Its Cash Budget for March ...
The Bandeiras Corporation, a Merchandising Firm, Has Budgeted Its Activity ...
Bries Corporation Is Preparing Its Cash Budget for January ...