Reference no: EM133118656

Question - Assume a merchandising company's estimated sales for January, February, and March are $109,000, $129,000, and $119,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month's cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What is the accounts payable balance at the end of February?