Weisbro and Sons Purchases Its Inventory One Quarter Prior to the Quarter

question 73

Multiple Choice

Weisbro and Sons purchases its inventory one quarter prior to the quarter of sale.The purchase price is 60 percent of the sales price.The accounts payable period is 60 days.The accounts payable balance at the beginning of Quarter 1 is $27,500.Sales for Quarters 1 through 4 are expected to be $31,000,$34,000,$42,000,and $51,000,respectively.What is the amount of the expected disbursements for Quarter 3? Assume a 360 day year.

• A)$19,200
• B)$20,400
• C)$27,000
• D)$28,800
• E)$22,000

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Definitions:

Shelf Registrations

A regulatory provision that allows an issuer to register new securities without immediately selling them, facilitating future offerings.

Continuous Basis

A term indicating that an activity or action is conducted without interruption or cessation; ongoing.

Tender Offer

A public offer made by an individual, company, or group to purchase a large percentage of another company's shares or bonds at a specified price.

Class of Shares

Different categories of stock in a corporation, each conferring distinct rights and privileges.