Use the Following Information and the Percent-Of-Sales Method to Answer

question 24

Multiple Choice

Use the following information and the percent-of-sales method to answer the following question(s) .
Below is the 2004 year-end balance sheet for Banner,Inc.Sales for 2004 were $1,600,000 and are expected to be $2,000,000 during 2005.In addition,we know that Banner plans to pay $90,000 in 2005 dividends and expects projected net income of 4% of sales.(For consistency with the Answer selections provided,round your forecast percentages to two decimals. )

-Banner's projected accrued expenses for 2005 are:

• A)$120,000.
• B)$160,000.
• C)$100,000.
• D)$200,000.

---

Definitions:

Oxygen-poor

A condition or environment where the concentration of oxygen is significantly lower than the average.

Circulatory System

The circulatory system is the body's network of organs and vessels through which blood and lymph circulate, delivering nutrients and oxygen to cells and removing waste products.

Four-chambered Heart

A type of heart that consists of two atria and two ventricles, allowing complete separation of oxygenated and deoxygenated blood, commonly found in mammals and birds.

Circulatory System

The body system responsible for the flow of blood, nutrients, oxygen, carbon dioxide, and other substances to and from cells.