Correy Company Reported the Following Information for 2016 Cost of Goods Sold Is 35% of Sales

question 129

Multiple Choice

Correy Company reported the following information for 2016:
$$\begin{array} { l c c c } & \text { October }& \text { November } & \text { December } \\\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$$
Cost of goods sold is 35% of sales.
-Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
-Accounts payable is used only for inventory acquisitions.
How much is the budgeted balance for Accounts Payable at October 31, 2016?

• A)$96,000
• B)$144,000
• C)$204,000
• D)$102,400

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Definitions:

Criminally Negligent

Behaving in a reckless or careless manner that results in harm to others, without the intent to cause harm.

Health and Safety

Policies, procedures, and practices designed to prevent injury, illness, and accidents in the workplace or public environments.

Corporate Deviance

Behaviors by companies or their representatives that do not conform to societal expectations or norms, often involving unethical or illegal activities.

High Position

A status or role that ranks above others in terms of authority, responsibility, or hierarchical order.