Marigold Corp. estimates its sales at 220000 units in the first quarter and that sales will increase by 23000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at
$3753500.
$5453000.
$6546500.
$7623318.
2) Vaughn Manufacturing reported the following information for 2019:
October November December
Budgeted sales $460000 $410000 $500000
Budgeted purchases $280000 $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.
Vaughn 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 Vaughn receive during November?
a) $435000
b) $410000
c) $205000
d) $455000