Liu Electronics Budgeted Sales of $400 000 for the Month

question 6

Multiple Choice

Liu Electronics budgeted sales of $400 000 for the month of November; cost of sales is equal to 65% of sales. Beginning inventory for November was $80 000 and ending inventory for November should be $72 000. How much are the budgeted purchases for November?

• A)$264 800
• B)$252 000
• C)$254 800
• D)$265 200

---

Definitions:

Secret Profit

Financial gain obtained secretly and unethically as a result of one's position or through the exploitation of confidential information.

Conflict of Interest

A situation where an individual's personal interests could improperly influence the performance of their duties or decision-making.

Dual Agency

A real estate transaction scenario in which a single agent or broker represents both the buyer and the seller, creating potential conflicts of interest.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing another person’s assets, involving a relationship of trust and confidence.