Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: $\bullet$Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
$\bullet$Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
$\bullet$The cost of goods sold is 80% of sales.
$\bullet$The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
$\bullet$Other monthly expenses to be paid in cash are $21,100.
$\bullet$Monthly depreciation is $21,000.
$\bullet$Ignore taxes.
Accounts payable at the end of December would be:

Question

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: $\bullet$Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
$\bullet$Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
$\bullet$The cost of goods sold is 80% of sales.
$\bullet$The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
$\bullet$Other monthly expenses to be paid in cash are $21,100.
$\bullet$Monthly depreciation is $21,000.
$\bullet$Ignore taxes.
 Accounts payable at the end of December would be:

Quizplus · Accepted Answer

December accounts payable balance:
 11eacbfc_c5ef_8fb5_8ffe_c317c8dbc0fc_TB7552_00 The company pays for its purchases in the month following purchase, so the accounts payable at the end of December will equal the required purchases in December.

Dilly Farm Supply Is Located in a Small Town in the Rural