Nobula Corp Assume That Accounts Payable Pertains Only to Suppliers of Inventory

question 44

Multiple Choice

Nobula Corp. is preparing their budget for the 2^nd quarter and provides the following data: $$\begin{array} { | l | r | r | r | } \hline & { \text { Apr } } & { \text { May } } & \text { Jun } \\\hline \text { Budgeted purchases } & \$ 20,000 & \$ 24,000 & \$ 18,000 \\\hline \text { Budgeted Cash Payments for Inventory } & & & \\\text { Purchases } & { \text { Apr } } &{ \text { May } } & \text { Jun } \\\hline 60 \% \text { of previous month purchases } & \$ 6,000 & \$ 12,000 & \$ 14,400 \\\hline 40 \% \text { of current month purchases } & 8,000 & 9,600 & 7,200 \\\hline \text { Total cash payments } & \$ 14,000 & \$ 21,600 & \$ 21,600 \\\hline\end{array}$$ Assume that accounts payable pertains only to suppliers of inventory. Based on the above data, the amount of Accounts Payable that should be shown in the budgeted balance sheet as on June 30^th is:

• A) $12,000.
• B) $3,600.
• C) $10,800.
• D) $5,400.

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Definitions:

Second-Born

Refers to a person who is the second child in their family, which can influence their personality and behavior according to birth order theory.

Social Deprivation

The lack of socially nurturing environments and relationships, which can lead to adverse effects on development and well-being.

Adult Criminals

Individuals beyond the age of majority who engage in conduct that is considered an offense and punishable by law.

Material Goods

Physical items that are produced, bought, or sold to satisfy needs and desires, including consumer goods.