Correy Inc All Sales Are on Credit

Correy Inc.reported the following information for 2022: $\begin{array}{lll}&\text { October } & \text { November } & \text { December } \\\text { Budgeted sales }&\$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases }&\$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$ 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) $220000
B) $490000
C) $450000
D) $440000

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free