Farley Company reported the following information for 2016: 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
Correct Answer:
Verified
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