Use the Information Below to Answer the Following Questions

question 32

Multiple Choice

Use the information below to answer the following questions.
Saddle Company, a leather manufacturer, has a sales budget of $500,000 for February. The cost of sales is estimated to be 35% of sales. All materials purchased by Saddle Company are paid for in the month following the purchase. The beginning inventory for February is $10,000, and an ending inventory of $11,000 is desired. The trade payables balance at the beginning of February is $88,000.
-Refer to the information above. The cost of sales for February is expected to be:

• A) $175,000
• B) $197,000
• C) $176,000
• D) $186,000

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Definitions:

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders, used as a broad measure of economic performance.

High-Income Countries

Nations with a high gross national income per capita, which typically have advanced economic structures and offer a high standard of living to their citizens.

Latin American

Pertaining to regions in the Americas where Romance languages (primarily Spanish and Portuguese) are primarily spoken, encompassing cultural and historical aspects.

Sub-Saharan Africa

A geographical term used to describe the area of the African continent that lies south of the Sahara Desert.