Exhibit 9-1
Sporting Inc -Refer to Exhibit 9-1

question 6

Multiple Choice

Exhibit 9-1
Sporting Inc.is a distributor which sells one product for $100 per unit.Sporting pays $60 to buy the product.In addition,fixed costs total $60,000 per month.Sporting wishes to maintain an inventory at the end of each month equal to 30% of the next month's projected sales.Purchases are paid in the month after purchase.
Sporting makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale.Budgeted monthly sales in units for the first five months of 2013 are as follows:
$\begin{array}{ll}\text { January } & 10,000 \text { units } \\\text { February } & 15,000 \text { units } \\\text { March } & 18,000 \text { units } \\\text { April } & 20,000 \text { units } \\\text { May } & 16,000 \text { units }\end{array}$
-Refer to Exhibit 9-1.What will accounts payable be at the end of April?

• A)$552,000
• B)$1,272,000
• C)$1,128,000
• D)$1,848,000
• E)None of the answer choices is correct.

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