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valentina_108 [34]
3 years ago
10

The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:

Sales at $460,000, all for cash. Merchandise inventory on November 30 was $205,000. The cash balance at December 1 was $19,000. Selling and administrative expenses are budgeted at $63,000 for December and are paid in cash. Budgeted depreciation for December is $27,000. The planned merchandise inventory on December 31 is $235,000. The cost of goods sold is 70% of the sales price. All purchases are paid for in cash. There is no interest expense or income tax expense. The budgeted cash receipts for December are:
Business
1 answer:
oksano4ka [1.4K]3 years ago
6 0

Answer:

$460,000

Explanation:

The budgeted cash receipts are equal to the total expected sales since the company only makes sales on cash.

The budgeted cash receipts are part of the cash budget that the company prepares. It estimates all the cash inflows (sales receipts) and cash outflows (expenses and merchandise purchases). The outflows are called budgeted cash disbursements.

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