Payables Are Entirely Due to Inventory Purchases at Cosmo Inc

question 10

Essay

Payables are entirely due to inventory purchases at Cosmo Inc. COGS is 70% materials, and the company pays its bills in 50 days. This year's revenue is $1,000,000 and is forecast to grow by 15% next year. The cost ratio (COGS as a % of revenue)is planned at 40% next year. Forecast next year's ending payables balance.

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