Use the Following Information for Questions

question 28

Multiple Choice

Use the following information for questions
Livanos, Inc.reports all its sales on credit, and pays operating costs in the month incurred.Amounts for 2020 are:

-Customer amounts on account are collected 70% in the month of sale and 30% in the following month.
-Cost of goods sold is 60% of sales.
-Livanos purchases and pays for merchandise 40% in the month of acquisition and 60% in the following month.
-Operating expenses are: Salaries, $50,000; Depreciation, $12,000; Rent, $15,000; and Utilities, $14,000.
-Accounts payable is used only for inventory acquisitions.
-How much is Livanos' budgeted balance for Accounts Payable at May 31, 2020?

• A)$124,800
• B)$72,000
• C)$51,200
• D)$76,800

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Definitions:

On-the-job Training

Instruction and training provided to employees at their place of work while they are performing their job duties.

Teenagers

Young individuals typically between the ages of 13 and 19, undergoing the transition from childhood to adulthood.

Demand for Bicycles

The consumer interest and willingness to buy bicycles, which can be influenced by factors like environmental concerns, health awareness, and economic conditions.

Wages

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee.