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What is the accounts payable balance at the beginning

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Question - ALPHA, Inc. sells all of its products on credit. Purchases are 60% of the sales for the following quarter. The firm uses a 365-day year and account averages where applicable in its computations.

The financial manager of the firm provides the following relevant information:

Accounts receivable period 37 days

Inventory period 51 days

Accounts payable period 42 days

Account

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Sales

$7,000

$6,000

$8,000

$9,000

Wages

$2,000

$1,500

$2,000

$2,500

Overhead expenses

$500

$400

$500

$600

Dividends

$125

$125

$125

$125

Interest expense

$350

$150

$200

$300

Required - What is the accounts payable balance at the beginning of Quarter 2?

Reference no: EM132889357

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