The Murcer Company Has Budgeted the Following Activity for October

question 2

Multiple Choice

The Murcer Company has budgeted the following activity for October:
Sales of $300,000 all in cash
Inventory of finished goods at September 30^th is $120,000
The cost of goods sold is 60% of the selling price
Planned merchandise inventory at October 31^st is $100,000
All purchases were paid for in cash
Budgeted inventory purchases for October are:

• A)$300,000
• B)$280,000
• C)$160,000
• D)$152,000

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Definitions:

Statement of Activities

A financial report detailing the revenues, expenses, and changes in net assets of an organization, typically used by nonprofits.

GAAP Definition

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction, especially in the United States.

Nonreciprocal Transaction

A transaction where one party provides goods, services, or assets without directly receiving something of equivalent value in return.

Unconditional Transfers

Transactions where the giver provides assets or resources to another party without any specified conditions for their use or return.