Answered
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
On May 20, 2024