Use the Following Information for the Next 5 Questions

question 130

Multiple Choice

Use the following information for the next 5 questions.
Kelita, Inc., projects sales for its first three months of operation as follows: Inventory on October 1 is $40,000. Subsequent beginning inventories should be 40% of that month's cost of goods sold. Goods are priced at 140% of their cost. 50% of purchases are paid for in the month of purchase; the balance is paid in the following month. It is expected that 50% of credit sales will be collected in the month following sale, 30% in the second month following the sale, and the balance the third month. A 5% discount is given if payment is received in the month following sale.
-What is the projected cost of purchases for October?

• A) $80,000
• B) $93,333
• C) $120,000
• D) $180,000

---

Definitions:

A Priori Causal Theories

Preexisting theories, acquired from culture or factors that are particularly prominent in conscious attention at the moment.

Repress Unpleasant Information

The involuntary forgetting or pushing aside of difficult or disturbing facts, thoughts, or memories.

Self-Reported Accounts

Information provided by individuals about themselves, often used in research to gather data on behaviors, attitudes, and experiences.

Confirmation Bias

The propensity to accumulate, perceive, select, and keep in mind information that endorses an individual's longstanding beliefs or propositions.