#19 For the month of September, a merchandising business down the street budgete
ID: 2484705 • Letter: #
Question
#19
For the month of September, a merchandising business down the street budgeted its activity according to the following information:
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Sales at $461,000, all for cash
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Merchandise inventory on August 31 was $198,000.
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The cash balance September 1 was $26,000.
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Selling and administrative expenses are budgeted at $59,200 for September and are paid for in cash.
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Budgeted depreciation for September is $24,800.
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The planned merchandise inventory on September 30 is $244,000.
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The cost of goods sold is 63% of the selling price.
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All purchases are paid for in cash.
The budgeted cash receipts for September are:
a. $290,430
b. $170,570
c. $485,800
d. $461,000
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Sales at $461,000, all for cash
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Merchandise inventory on August 31 was $198,000.
•
The cash balance September 1 was $26,000.
•
Selling and administrative expenses are budgeted at $59,200 for September and are paid for in cash.
•
Budgeted depreciation for September is $24,800.
•
The planned merchandise inventory on September 30 is $244,000.
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The cost of goods sold is 63% of the selling price.
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All purchases are paid for in cash.
Explanation / Answer
The budgeted cash receipts will be equal to the amnount of cash sales that is $461,000. Therefore, d is the correct answer.
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