Correy Company Reported the Following Information for 2013 Cost of Goods Sold Is 35% of Sales

question 113

Multiple Choice

Correy Company reported the following information for 2013: $\begin{array}{llll}&\text { October }&\text {November }&\text {December }\\\text { Budgeted sales } & \$ 460,000 & \$ 440,000 & \$ 540,000 \\\text { Budgeted purchases } & \$ 240,000 & \$ 256,000 & \$ 288,000\end{array}$ 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, 2013?

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

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Definitions:

Radial Artery

A major artery in the forearm that supplies blood to the lateral aspect of the hand and is commonly used for checking the pulse.

Deep Femoral Artery

A large branch of the femoral artery that supplies blood to the deep structures of the thigh.

Pulmonary Vein

A large blood vessel that carries oxygenated blood from the lungs to the left atrium of the heart.

Pulmonary Artery

A major artery in the body that transports deoxygenated blood from the heart to the lungs for oxygenation.