Walsh Enterprises, Inc., is a retailer of parts for exotic automobiles. The company has budgeted parts purchases for the next three months as follows:
All purchases are made on a credit basis. The company expects that 60% of its payables related to purchases will be paid in the month of purchase, with the remaining 40% paid in the following month. The ending balance in accounts payable related to parts purchases on March 31 was $80,000. What will be the budgeted balance in accounts payable at the end of June?
A) $90,000
B) $60,000
C) $108,000
D) $150,000

Question

Walsh Enterprises, Inc., is a retailer of parts for exotic automobiles. The company has budgeted parts purchases for the next three months as follows:
 All purchases are made on a credit basis. The company expects that 60% of its payables related to purchases will be paid in the month of purchase, with the remaining 40% paid in the following month. The ending balance in accounts payable related to parts purchases on March 31 was $80,000. What will be the budgeted balance in accounts payable at the end of June?
A) $90,000 
B) $60,000 
C) $108,000 
D) $150,000

Quizplus · Accepted Answer

The Answer of Walsh Enterprises, Inc., is a retailer of parts for exotic automobiles. The company has budgeted parts purchases for the next three months as follows:
 All purchases are made on a credit basis. The company expects that 60% of its payables related to purchases will be paid in the month of purchase, with the remaining 40% paid in the following month. The ending balance in accounts payable related to parts purchases on March 31 was $80,000. What will be the budgeted balance in accounts payable at the end of June?
A) $90,000 
B) $60,000 
C) $108,000 
D) $150,000