Correy Inc All Sales Are on Credit

Correy Inc. reported the following information for 2016:

$$\begin{array} { l c c c } & \text { October }& \text { November } & \text { December } \\\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$$
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

Correct Answer:

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