Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume a merchandising companys estimated sales fo

Assume a merchandising companys estimated sales for January, February, and March are $103,000, $123,000, and...

90.2K

Verified Solution

Question

Accounting

Assume a merchandising companys estimated sales for January, February, and March are $103,000, $123,000, and $113,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month.

What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Multiple Choice

$68,720

$69,720

$66,720

$63,720

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

As the n number of orbit increases the difference of energy between the consecutive energy...

Physics
Q

Partial information from the comparative balance sheet ofJackson Company as of December 31, 2020...

Accounting
Q

PRACTICE PROBLEMUtilizing the following information, prepare a classifiedbalance sheet for Shoe Company at December...PRACTICE...

Accounting
Q

def vend():     a = {'key': '0', 'item': 'choc', 'price': 1.50, 'stock': (2)}     b = {'key': '1', 'item': 'pop',...

Programming
Q

Height of water that would be filled in a container of height 21 cm so...

Physics
Q

State what kind of correlation if any the scatterplot to the right indicates Choose the...

Basic Math
Q

A stone was dropped off a cliff and hit the ground with a speed of...

Calculus
Q

Simplify. (Assume all variables are nonnegative.) (3?2x - ?3x) - (?2x - 7?3x)Provide your answer...

Algebra
Q

Allocating Joint Costs Using the Weighted Average Method Sunny Lane, Inc., purchases peaches from local...

Accounting
Q

On December 31, the company provides consulting services and receives cash of $5,000. Note: Enter...

Accounting
Q

Question 19(10 points) You recently purchased 600 shares of Southern Timber stock for...

Finance
Q

9. Days in inventory at the end of Year 2 is closest to: A. 60.0...

Finance