80.2K
Verified Solution
Link Copied!
Correy Inc. reported the following information for 2016:
October November December
Budgeted sales $460,000 $440,000 $540,000
Budgeted purchases $240,000 $256,000 $288,000
All sales are on credit.
Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
Cost of goods sold is 35% of sales.
Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
Accounts payable is used only for inventory acquisitions.
How much cash will Correy receive during November?
a. $220,000
b. $490,000
c. $450,000
d. $440,000
Answer & Explanation
Solved by verified expert
