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Farley Company Reported the Following Information for 2016 All Sales Are on Credit

Question 151

Multiple Choice

Farley Company reported the following information for 2016:  September  October  November  December  January  Budgeted sales $240,000$310,000$290,000$360,000$200,000 Budgeted purchases $90,000$120,000$128,000$144,000$88,000\begin{array} { l c c c c c } & \text { September } & \text { October } & \text { November } & \text { December } & \text { January } \\\text { Budgeted sales } & \$ 240,000 & \$ 310,000 & \$ 290,000 & \$ 360,000 & \$ 200,000 \\\text { Budgeted purchases } & \$ 90,000 & \$ 120,000 & \$ 128,000 & \$ 144,000 & \$ 88,000\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.
-Farley 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 Farley receive during November?


A) $145,000
B) $325,000
C) $300,000
D) $290,000

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