The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: Sales at $510.000, all for cash. • Merchandise inventory on November 30 was $230,000. The cash balance at December 1 was $24,000. Selling and administrative expenses are budgeted at $78.000 for December and are paid in cash. • Budgeted depreciation for December is $37,000. • The planned merchandise inventory on December 31 is $260,000. 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: Multiple Choice $135.000 $375,000 $547,000 $510.000

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
Sales at $510,000, all for cash.
Merchandise inventory on November 30 was $230,000.
The cash balance at December 1 was $24,000.
Selling and administrative expenses are budgeted at $78.000 for December and are paid in cash.
• Budgeted depreciation for December is $37,000.
• The planned merchandise inventory on December 31 is $260,000.
• 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:
Multiple Choice
$135,000
$375.000
$547,000
$510.000
Transcribed Image Text:The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: Sales at $510,000, all for cash. Merchandise inventory on November 30 was $230,000. The cash balance at December 1 was $24,000. Selling and administrative expenses are budgeted at $78.000 for December and are paid in cash. • Budgeted depreciation for December is $37,000. • The planned merchandise inventory on December 31 is $260,000. • 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: Multiple Choice $135,000 $375.000 $547,000 $510.000
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