Use the following information for the next 4 questions.
Conner Company is a medium-sized toy distributor. Experience has shown that 30% of sales are collected within the month of sale, 60% is collected the month after the sale, and 10% is collected two months after the sale. Inventory on hand at the end of a month is to be 70% of the next month's budgeted sales. Cost of goods sold is 50% of the selling price. Payment for purchases is made in the month after purchase. All other costs are paid in the month incurred. Budgeted amounts are as follows:
-Purchases for the month of May are expected to be
A) $21,000
B) $15,000
C) $30,000
D) $10,500

Question

Use the following information for the next 4 questions.
Conner Company is a medium-sized toy distributor. Experience has shown that 30% of sales are collected within the month of sale, 60% is collected the month after the sale, and 10% is collected two months after the sale. Inventory on hand at the end of a month is to be 70% of the next month's budgeted sales. Cost of goods sold is 50% of the selling price. Payment for purchases is made in the month after purchase. All other costs are paid in the month incurred. Budgeted amounts are as follows: 
-Purchases for the month of May are expected to be
A) $21,000 
B) $15,000 
C) $30,000 
D) $10,500

Quizplus · Accepted Answer

The Answer of Use the following information for the next 4 questions.
Conner Company is a medium-sized toy distributor. Experience has shown that 30% of sales are collected within the month of sale, 60% is collected the month after the sale, and 10% is collected two months after the sale. Inventory on hand at the end of a month is to be 70% of the next month's budgeted sales. Cost of goods sold is 50% of the selling price. Payment for purchases is made in the month after purchase. All other costs are paid in the month incurred. Budgeted amounts are as follows: 
-Purchases for the month of May are expected to be
A) $21,000 
B) $15,000 
C) $30,000 
D) $10,500

Use the Following Information for the Next 4 Questions