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

question 67

Multiple Choice

Farley Company reported the following information for 2016: $$\begin{array} { l c c c c c } & \text { September } & \text { October } & \text { November } & \text { December } & \text { January } \\\text { Budgeted sales } & \$ 240,000 & \$ 310,000 & \$ 290,000 & \$ 360,000 & \$ 200,000 \\\text { Budgeted purchases } & \$ 90,000 & \$ 120,000 & \$ 128,000 & \$ 144,000 & \$ 88,000\end{array}$$ Cost of goods sold is 35% of sales.
-Farley 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)$48,000
• B)$72,000
• C)$102,000
• D)$51,200

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Definitions:

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life.

Protein

Essential molecules made up of amino acids that support muscle growth, repair, and overall body function.

Molecules

The smallest unit of a chemical compound that can take part in a chemical reaction, consisting of two or more atoms bonded together.

Energy Density

The number of calories in a specific weight of food, indicating how energy-dense food is. Foods with high energy density have more calories per gram, while those with low energy density have fewer calories.