Use This Information to Answer the Following Question In Addition,beginning Merchandise Inventory Was $22,000 and Ending Merchandise Inventory

question 40

Multiple Choice

Use this information to answer the following question. $\begin{array}{|l|r|r|}\hline \text { Account Name } & \text { Debit } & \text { Credit } \\\hline \text { Sales } & & 303,000 \\\text { Sales Returns and Allowances } & 10,000 & \\\text { Purchases } & 68,000 & \\\text { Purchases Returns and Allowances } & & 8,000 \\\text { Freight-In } & 12,000 & \\\text { Selling Expenses } & 30,000 & \\\text { General and Administrative Expenses } & 110,000 & \\\hline\end{array}$ In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were

• A) $303,000.
• B) $273,000.
• C) $293,000.
• D) $213,000.

Determine the budgeted cost of goods manufactured by considering direct materials, direct labor, and factory overhead costs.

Calculate the budgeted sales revenue and assess its impact on financial planning.

Understand the concept of cash flow management including receipts and payments.

Calculate expected cash collections and payments based on sales and expenses forecasts.

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Definitions:

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Alkaline

Having a pH greater than 7, typically describing a basic substance as opposed to an acidic one.

Humus

Organic component of soil formed by the decomposition of leaves and other plant material, rich in nutrients.

Deciduous Forest Soil

The fertile, nutrient-rich soil found in forests that lose their leaves seasonally, characterized by rich organic matter and biodiversity.