Cave Hardware's Forecasted Sales for April,May,June,and July Are $200,000,$230,000,$190,000,and $240,000,respectively
Multiple Choice
Cave Hardware's forecasted sales for April,May,June,and July are $200,000,$230,000,$190,000,and $240,000,respectively.Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale.Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold.All inventory purchases are paid 22% in the month of purchase and 78% in the following month.
What are the budgeted cash payments in June to account for the inventory purchases at Cave Hardware?
A) $495,000
B) $315,750
C) $164,385
D) $167,415
Correct Answer:
Verified
Correct Answer:
Verified
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