Business, 27.06.2020 01:01 duwaunacozad
Metro, Inc. sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 20% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $70,000. All purchases are made on account with 25% of accounts paid in the month of purchase and the remaining 75% paid in the month following the month of purchase.
Sales January February March
Budgeted cost of goods sold $40,000 $50,000 $60,000
Plus: Desired ending inventory 10,000
Inventory needed 50,000
Less: Beginning inventory (8,000)
Required purchases $42,000
1. Based on this information the total cash paid in March to settle accounts payable is:.
a. $39,000.
b. $15,500.
c. $62,000.
d. $54,500.
2. The amount of accounts payable appearing on the March 31 pro forma balance sheet is:.
a. $15,500.
b. $46,500.
c. $62,000.
d. none of the answers is correct.
Answers: 3
Business, 22.06.2019 07:50
Connors academy reported inventory in the 2017 year-end balance sheet, using the fifo method, as $154,000. in 2018, the company decided to change its inventory method to lifo. if the company had used the lifo method in 2017, the company estimates that ending inventory would have been in the range $130,000-$135,000. what adjustment would connors make for this change in inventory method?
Answers: 1
Business, 22.06.2019 19:40
Which term describes an alternative to car buying where monthly payments are paid for a specific period of time, after which the vehicle is returned to the dealership or bought? a. car financing b. car maintenance c. car leasing d. car ownership
Answers: 3
Metro, Inc. sells backpacks. The Company's accountant is preparing the purchases budget for the firs...
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