Assuming the accounts payable balance at the end of 2017 is $75,000,and it has decreased 20% since the end of 2016,the balance at the end of 2016 (rounded to the nearest whole dollar_was:
A) $60,000
B) $93,750
C) $72,000
D) $90,000

Question

Quizplus · Accepted Answer

If the accounts payable balance at the end of 2017 is $75,000 and it has decreased 20% since the end of 2016, then we can use the following formula to calculate the balance at the end of 2016:

End of 2016 balance = End of 2017 balance / (1 - % decrease)

End of 2016 balance = $75,000 / (1 - 0.20)

End of 2016 balance = $75,000 / 0.80

End of 2016 balance = $93,750

Rounding this to the nearest whole dollar gives us the answer of $94,000.

Therefore, the best choice is B, as it is the closest numerical value to the calculated answer.

Assuming the Accounts Payable Balance at the End of 2017