Correy Inc.reported the following information for 2016: $\begin{array}{lr}
&\text { October }&\text { November }&\text { December }\
\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \
\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000
\end{array}$ •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

Question

Correy Inc.reported the following information for 2016: $\begin{array}{lr}
&\text { October }&\text { November }&\text { December }\
\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \
\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000
\end{array}$ •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

Quizplus · Accepted Answer

The Answer of Correy Inc.reported the following information for 2016: $\begin{array}{lr}
&\text { October }&\text { November }&\text { December }\
\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \
\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000
\end{array}$ •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

Correy Inc •All Sales Are on Credit