Super Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below:

Additional information regarding Super Drive's operations appear below:
• Sales are budgeted at $520,000 for December and $500,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following sale. There are no bad debts.
• 80% of the disk drive components are purchased in the month prior to the month of the sale, and 20% are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold.
• Payment for components purchased is made in the month following the purchase.
• Assume that the cost of goods sold is 80% of sales.

-The balance in accounts payable on the budgeted balance sheet for December 31 should be:

Question

Super Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below:

Additional information regarding Super Drive's operations appear below:
• Sales are budgeted at $520,000 for December and $500,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following sale. There are no bad debts.
• 80% of the disk drive components are purchased in the month prior to the month of the sale, and 20% are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold.
• Payment for components purchased is made in the month following the purchase.
• Assume that the cost of goods sold is 80% of sales.

-The balance in accounts payable on the budgeted balance sheet for December 31 should be:

Quizplus · Accepted Answer

The balance in accounts payable is typically calculated based on the percentage of purchases that are unpaid by the end of the period. Without additional context or data, the correct choice is based on the most likely scenario or given information, which is $161,280.

Super Drive Is a Computer Hard Drive Manufacturer