Use the "Percent of Sales Method" of Preparing Pro Forma

question 48

Multiple Choice

Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts payable.Make the following assumptions: current year's sales are $27,800,000; current year's cost of goods sold is $17,528,000; sales are expected to rise by 30%.The firm's investment in accounts payable in the current year is $2,218,500.What is the projection for next year's accounts payable?

• A) $2,127,000
• B) $3,781,750
• C) $2,884,050
• D) $4,184,000

---

Definitions:

Methicillin-resistant Staphylococcus Aureus

A type of bacteria that is resistant to many antibiotics, making it a cause of various difficult-to-treat infections.

Isolation

Separation of a seriously ill patient from others to prevent the spread of an infection or protect the patient from irritating environmental factors.

Orem's Theory

a nursing theory developed by Dorothea Orem that suggests patients are better able to recover when they maintain some degree of independence over their own care.

Self-care

The practice of taking action to preserve or improve one's own health, well-being, and happiness, particularly during periods of stress.