the adams company a merchandising firm has budgeted its activity for november a cont 459169

The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:

‘ Sales were at $450,000, all for cash.

‘ Merchandise inventory on October 31 was $200,000.

‘ The cash balance on November 1 was $18,000.

‘ Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.

‘ Budgeted depreciation for November is $25,000.

‘ The planned merchandise inventory on November 30 is $230,000.

‘ The cost of goods sold is 70% of the selling price.

‘ All purchases are paid for in cash.

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17. The budgeted cash disbursements for November are

A. $375,000.

B. $405,000.

C. $345,000.

D. $530,000.

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