The Gomez Company, a merchandising firm, has budgeted its activity for December

Question

The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information:

• Sales at $800,000, all for cash.
• Merchandise Inventory on November 30 was $400,000.
• The cash balance at December 1 was $50,000.
• Selling and administrative expenses are budgeted at $58,000 for December and are paid for in cash.
• Budgeted depreciation for December is $39,000.
• The planned merchandise inventory on December 31 is $410,000.
• The cost of goods sold represents 60% of the selling price.
• All purchases are paid for in cash.

The budgeted cash receipts for December are:

$320,000

$480,000

$800,000

$839,000

The budgeted cash receipts for December are:

Explanation / Answer

There is only one cash receipt in the information mention that is sales of $800,000 rest all are expenses.

So the correct answer is $ 800,000

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