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

question 109

Multiple Choice

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

• A) $96000
• B) $144000
• C) $204000
• D) $102400

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