Zimmer Company reported the following information for 2010:
$\bullet$

Cost of goods sold is 35% of sales.
$\bullet$Zimmer purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
$\bullet$Accounts payable is used only for inventory acquisitions.
How much is the budgeted balance for Accounts Payable at October 31, 2010?
A) $48,000
B) $72,000
C) $102,000
D) $51,200

Question

Zimmer Company reported the following information for 2010:
$\bullet$

Cost of goods sold is 35% of sales.
$\bullet$Zimmer purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
$\bullet$Accounts payable is used only for inventory acquisitions.
How much is the budgeted balance for Accounts Payable at October 31, 2010?
A) $48,000 
B) $72,000 
C) $102,000 
D) $51,200

Quizplus · Accepted Answer

The Answer of Zimmer Company reported the following information for 2010:
$\bullet$

Cost of goods sold is 35% of sales.
$\bullet$Zimmer purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
$\bullet$Accounts payable is used only for inventory acquisitions.
How much is the budgeted balance for Accounts Payable at October 31, 2010?
A) $48,000 
B) $72,000 
C) $102,000 
D) $51,200

Zimmer Company Reported the Following Information for 2010 ∙\bullet∙ Cost of Goods Sold Is 35% of Sales

Zimmer Company Reported the Following Information for 2010 $\bullet$ Cost of Goods Sold Is 35% of Sales