Farley Company Reported the Following Information for 2016 All Sales Are on Credit

question 58

Multiple Choice

Farley Company reported the following information for 2016: $$\begin{array} { l c c c c c } & \text { September } & \text { October } & \text { November } & \text { December } & \text { January } \\\text { Budgeted sales } & \$ 240,000 & \$ 310,000 & \$ 290,000 & \$ 360,000 & \$ 200,000 \\\text { Budgeted purchases } & \$ 90,000 & \$ 120,000 & \$ 128,000 & \$ 144,000 & \$ 88,000\end{array}$$ 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.
-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

---

Definitions:

Attorneys

Legal professionals who are licensed to practice law, advise and represent clients in legal matters, and may act as both advocates and advisors in court.

FRCP 33

A rule under the Federal Rules of Civil Procedure that governs the use of interrogatories in gathering information during lawsuits.

Interrogatories

Written questions formally posed by one party to another in a lawsuit, requiring the answering party to provide written answers under oath.

Subpoena Duces Tecum

A legal order requiring a person to produce documents or records for a court case or legal investigation.