Reference no: EM132072874

Question - The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

• Sales at $520,000, all for cash.
• Merchandise inventory on October 31 was $235,000.
• The cash balance November 1 was $25,000.
• Selling and administrative expenses are budgeted at $81,000 for November and are paid for in cash.
• Budgeted depreciation for November is $39,000.
• The planned merchandise inventory on November 30 is $265,000.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.
• There is no interest expense or income tax expense.

Calculate the budgeted cash receipts for November?

$385,000

$520,000

$135,000

$559,000