Correy Company Reported the Following Information for 2019 Cost of Goods Sold Is 35% of Sales

question 8

Multiple Choice

Correy Company reported the following information for 2019: $\begin{array}{llll}&\text { October }& \text { November }& \text { December }\\\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$ Cost of goods sold is 35% of sales.

-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, 2019?

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

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Definitions:

Coercive Power

The ability of a person to influence others' behavior by punishing or threatening punishment if they do not comply with demands or expectations.

Legitimate Power

The authority or power that is recognized and accepted within an organizational or societal structure, often based on a position of leadership or role.

Position Power

The authority and influence a person holds in an organization by virtue of the position they occupy, rather than personal attributes or expertise.

Reward Power

Reward power is the capacity to offer something of value as a way of influencing other people.