Limitless Styles Has a 45 Day Accounts Payable Period

question 202

Multiple Choice

Limitless Styles has a 45 day accounts payable period. The firm has expected sales of $900, $1,200, $1,900, and $2,600, respectively, by quarter for the next calendar year. The cost of goods
Sold for a quarter is equal to 70% of the next quarter sales. The firm has a beginning payables
Balance of $600 as of quarter one. What is the amount of the projected cash disbursements for
Accounts payable for Quarter 3 of the next year? Assume that a year has 360 days.

• A) $950
• B) $1,085
• C) $1,195
• D) $1,575
• E) $1,820

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Definitions:

Active System

A mechanism or process that requires energy to operate and actively manages or controls conditions.

Organizes

The act of arranging or structuring elements in a systematic way for efficiency and functionality.

Retrieves

The process of getting back information or objects that were stored or kept away.

Alters

Alternate identities or personalities within an individual, often associated with dissociative identity disorder (DID), where a person's identity is fragmented into two or more distinct states.