Correy Inc All Sales Are on Credit $\bullet$ Customer Amounts on Account Are Collected 50% in the Month

Correy Inc. reported the following information for 2016: $\begin{array}{llll}&\text { October }&\text { November } & \text { December }\\\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$ All sales are on credit.
$\bullet$ Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
$\bullet$ Cost of goods sold is 35% of sales.
$\bullet$ Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
$\bullet$ Accounts payable is used only for inventory acquisitions.
How much cash will Correy receive during November?

A) $220000
B) $490000
C) $450000
D) $440000

Correct Answer:

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