Cave Hardware's Forecasted Sales for April; May; June; and July

question 99

Multiple Choice

Cave Hardware's forecasted sales for April; May; June; and July are $200,000; $230,000; $190,000; and $240,000; respectively. Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 22% in the month of purchase and 78% in the following month. What is the balance of accounts payable on the June 30 budgeted balance sheet?

• A)$32,175
• B)$108,225
• C)$146,250
• D)$114,075

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Definitions:

Irritability

A characteristic feature of living organisms, referring to the capacity to respond quickly to stimuli, often used to describe a tendency to easily become annoyed or upset.

Adaptability

The ability to adjust effectively to new conditions or to changes in one's environment.

Projective Test

A type of personality test in which individuals respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Oedipal Conflict

A concept in psychoanalytic theory referring to a child’s unconscious sexual desire for the opposite-sex parent and jealousy toward the same-sex parent.