Use the information below to answer the following question(s) .
Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired. Beginning accounts payable is $152,000.
-Boone Hobbies budgeted purchases for next month is expected to be
A) $240,000.
B) $264,000.
C) $225,000.
D) $360,000.
E) $244,000.
Correct Answer:
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