Asked by Katelyn Tilden on May 16, 2024
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The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:Sales at $590,000, all for cash.Merchandise inventory on November 30 was $270,000.The cash balance at December 1 was $32,000.Selling and administrative expenses are budgeted at $102,000 for December and are paid in cash.Budgeted depreciation for December is $53,000.The planned merchandise inventory on December 31 is $300,000.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:
A) $455,000
B) $590,000
C) $135,000
D) $643,000
Merchandising Firm
A type of business that purchases finished products and sells them to consumers without altering the form of the goods.
Merchandise Inventory
Items and merchandise that are kept by a business with the intention of selling them to consumers.
Selling Expenses
Costs incurred directly from the selling of products or services, such as advertising and sales staff salaries.
- Calculate budgeted sales, cash collections, and cash disbursements.
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Learning Objectives
- Calculate budgeted sales, cash collections, and cash disbursements.
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