How much cash is required to eliminate the current balance

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Reference no: EM133131796

Question - Stingray Company began operations late in 2019. For the first quarter ended March 31, 2020, Stingray made available the following information:

Total merchandise purchased through March 15, recorded at net 4,900,000

Merchandise inventory on December 31, 2019 at selling price 1,500,000

All merchandise was acquired on credit and no payments have been made on accounts payable since the inception of the company. All merchandise is marked to sell at 50% above invoice cost before time discounts of 2/10, n/30. No sales were made in 2021. How much cash is required to eliminate the current balance in accounts payable?

Reference no: EM133131796

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