Reference no: EM132550577

Bonita, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2020 are:

                                    March         April             May            June                July

Budgeted sales          $300100     $290800      $319200     $280500      $210600

Budgeted purchases     $144500        $120800     $128000      $132000     $89800

• Customer amounts on account are collected 65% in the month of sale and 35% in the following month.
• Cost of goods sold is 70% of sales.
• Bonita purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month.
• Operating expenses are: Salaries, $49200; Depreciation, $12000; Rent, $15700; and Utilities, $14800.
• Accounts payable is used only for inventory acquisitions.

Question 1: How much cash will Bonita receive during May from customers

Option 1: $305655

Option 2: $309260

Option 3: $207480

Option 4: $300740