Waterway Industries reported the following information for 2016: October November December Budgeted sales $450000 $410000 $500000 Budgeted purchases $270000 $226000 $258000 • 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. • Waterway 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 Waterway receive during November? $205000 O $410000 O $455000 $430000

Waterway Industries reported the following information for 2016: October November December Budgeted sales $450000 $410000 $500000 Budgeted purchases $270000 $226000 $258000 • 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. • Waterway 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 Waterway receive during November? $205000 O $410000 O $455000 $430000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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