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

question 50

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 accounts payable balance for 2005 is:

• A)$160,000.
• B)$120,000.
• C)$200,000.
• D)$300,000.

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Definitions:

Physical Illnesses

Conditions affecting the body's structure or function that are not connected to mental health, characterized by specific signs and symptoms.

Five-factor Model

A theory in psychology that describes personality through five broad traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Agreeableness

Agreeableness is a personality trait that reflects a person's tendency to be friendly, compassionate, cooperative, and sympathetic towards others.

Sympathetic

Related to the sympathetic nervous system, which is a section of the autonomic nervous system responsible for triggering the body's "fight or flight" reaction.