Farley Company Reported the Following Information for 2012

question 44

Multiple Choice

Farley Company reported the following information for 2012:
-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.
-Farley 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 Farley receive during November?

• A)$145,000
• B)$325,000
• C)$300,000
• D)$290,000

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Definitions:

Angina Pectoris

A condition characterized by chest pain or discomfort due to coronary heart disease, where blood flow to the heart muscle is restricted.

Myocardium

The muscular tissue of the heart that is responsible for heart contractions to pump blood throughout the body.

Oxygen

A chemical element that is crucial for life, necessary for respiration in humans and animals, and plays a vital role in combustion.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries, leading to restricted blood flow.