Use the Following Information for Questions

question 47

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 2012 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 30, 2012?

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

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Definitions:

Venture Capitalist

A professional investor who provides capital to companies exhibiting high growth potential in exchange for equity or an ownership stake.

Equity

The value of an ownership interest in property, including shareholders' equity in a company, which represents the residual value to shareholders after debts and liabilities have been settled.

Angel Investors

Wealthy individuals who provide capital for start-ups or entrepreneurs, often in exchange for ownership equity.

Investment Range

The spectrum or variety of investment amounts or categories that an individual or entity is willing to commit to a project or asset.