Correy Inc All Sales Are on Credit

question 87

Multiple Choice

Correy Inc.reported the following information for 2022: $\begin{array}{lll}&\text { October } & \text { November } & \text { December } \\\text { Budgeted sales }&\$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases }&\$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$ 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)$220000
• B)$490000
• C)$450000
• D)$440000

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, considering the time value of money.

Speculative Bubbles

A situation in which prices for securities, especially stocks, rise far above their actual value based on expectations of further rises, typically followed by a sharp decline in prices.

Final Sale Price

The total cost at which a product or service is sold to the consumer, including the base price plus any additional charges or fees.

Future Value

The value of an investment or a sum of money at a specified future date, accounting for specified interest rates or earnings over time.