Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: $\bullet$Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January.
$\bullet$Collections are expected to be 90% in the month of sale and 10% in the month following the sale.
$\bullet$The cost of goods sold is 75% of sales.
$\bullet$The company desires to have an ending merchandise inventory equal to 60% of the following 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 $24,700.
$\bullet$Monthly depreciation is $16,000.
$\bullet$Ignore taxes.
Accounts payable at the end of December would be:

Question

Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: $\bullet$Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January.
$\bullet$Collections are expected to be 90% in the month of sale and 10% in the month following the sale.
$\bullet$The cost of goods sold is 75% of sales.
$\bullet$The company desires to have an ending merchandise inventory equal to 60% of the following 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 $24,700.
$\bullet$Monthly depreciation is $16,000.
$\bullet$Ignore taxes.
 Accounts payable at the end of December would be:

Quizplus · Accepted Answer

11eacbfc_c605_1417_8ffe_9dd870ef2b31_TB7552_00 Since purchases are paid in the month following purchase, the accounts payable at the end of December should be $231,000.

Carver Lumber Sells Lumber and General Building Supplies to Building ∙\bullet∙

Carver Lumber Sells Lumber and General Building Supplies to Building $\bullet$