How much is Sheridan budgeted balance for Accounts Payable

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Question - Sheridan, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2020 are:

 

March

April

May

June

July

Budgeted sales

$299800

$290700

$319300

$279100

$210000

Budgeted purchases

$144900

$120000

$127200

$132600

$89000

Customer amounts on account are collected 65% in the month of sale and 35% in the following month.

Cost of goods sold is 65% of sales.

Sheridan purchases and pays for merchandise 35% in the month of acquisition and 65% in the following month.

Operating expenses are: Salaries, $49000; Depreciation, $11900; Rent, $15300; and Utilities, $15000.

Accounts payable is used only for inventory acquisitions.

Required - How much is Sheridan' budgeted balance for Accounts Payable at May 31, 2020?

a. $124680

b. $78000

c. $44520

d. $82680

Reference no: EM132563408

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