Correy Inc All Sales Are on Credit

question 154

Multiple Choice

Correy Inc.reported the following information for 2013: $\begin{array}{llll}&\text { October }&\text {November }&\text {December }\\\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$ 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.
-Correy 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 Correy receive during November?

• A)$220,000
• B)$490,000
• C)$450,000
• D)$440,000