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ALPHA, Inc

Question 106

Multiple Choice

ALPHA, Inc. sells all of its products on credit. Purchases are 60% of the sales for the following quarter. The firm uses a 365-day year and account averages where applicable in its computations.

The financial manager of the firm provides the following relevant information:
ALPHA, Inc. sells all of its products on credit. Purchases are 60% of the sales for the following quarter. The firm uses a 365-day year and account averages where applicable in its computations. The financial manager of the firm provides the following relevant information: What is the accounts payable balance at the beginning of Quarter 2? A) $1,420 B) $1,680 C) $1,920 D) $2,240 E) $2,560 ALPHA, Inc. sells all of its products on credit. Purchases are 60% of the sales for the following quarter. The firm uses a 365-day year and account averages where applicable in its computations. The financial manager of the firm provides the following relevant information: What is the accounts payable balance at the beginning of Quarter 2? A) $1,420 B) $1,680 C) $1,920 D) $2,240 E) $2,560 What is the accounts payable balance at the beginning of Quarter 2?


A) $1,420
B) $1,680
C) $1,920
D) $2,240
E) $2,560

Correct Answer:

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