The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: • Sales at $620,000, all for cash. • Merchandise inventory on November 30 was $285,00. • The cash balance at December 1 was $35,000. Selling and administrative expenses are budgeted at $111,000 for December and are paid in cash. • Budgeted depreciation for December is $59,000. • The planned merchandise inventory on December 31 is $315,000. • The cost of goods sold is 70% of the sales price. • All purchases are paid for in cash. or income tax expense
The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: • Sales at $620,000, all for cash. • Merchandise inventory on November 30 was $285,00. • The cash balance at December 1 was $35,000. Selling and administrative expenses are budgeted at $111,000 for December and are paid in cash. • Budgeted depreciation for December is $59,000. • The planned merchandise inventory on December 31 is $315,000. • The cost of goods sold is 70% of the sales price. • All purchases are paid for in cash. or income tax expense
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
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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Transcribed Image Text:The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
Sales at $620,000, all for cash.
• Merchandise inventory on November 30 was $285,000.
• The cash balance at December 1 was $35,000.
• Selling and administrative expenses are budgeted at $111,000 for December and are paid in cash.
Budgeted depreciation for December is $59,000.
• The planned merchandise inventory on December 31 is $315,000.
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
$485,000
$620,000
$679,000
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