50.1K

Verified Solution

Link Copied!

22. Correy Inc. reported the following information for 2013: October November December Budgeted sales $460,000 $440.000 $540,000 Budgeted purchases $240,000 $256,000 $288,000 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) $450,000 B) S220.000 C) $440,000 D) $490,000 23. The margin of safety ratio is A) expected sales less break-even sales. B) margin of safety in dollars divided by expected sales. C) margin of safety in dollars divided by break even sales. D) expected sales divided by break-even sales. 24. Zoum Corporation had the following transactions during 2014: 1. Issued $125,000 of par value common stock for cash. 2. Recorded and paid wages expense of $60,000. 3. Acquired land by issuing common stock of par value $50,000 4. Declared and paid a cash dividend of $10,000 5. Sold a long-term investment (cost $3,000) for cash of $3,000. 6. Recorded cash sales of $400,000 7. Bought inventory for cash of $160,000 8. Acquired an investment in Zynga stock for cash of $21.000 9. Converted bonds payable to common stock in the amount of $500,000 10. Repaid a 6 year note payable in the amount of $220,000. What is the net cash provided by financing activities? A) $395.000 B) SH 15.000 C) S Version! Pages

Answer & Explanation Solved by verified expert

See Answer