Question

0. Myers Manufacturers has a sales budget for next month of $2000000. Cost of goods sold is expected to be 65 percent of sales. Accounts payable payments were $1414000 and ending accounts payable is $1625000. The beginning inventory of merchandise is $350000 and an ending inventory of $300000 is desired.

1. 3 The beginning accounts payable for Myers Manufacturers should be

   1. A $1,300,000

   2. B $1,789,000

   3. C $1,414,000

   4. D $2,275,000

Answer 1

Ending merchandise inventory	$     300,000
Less: Beginning merchandise inventory	$     350,000
Add: Cost of goods sold ($2,000,000*65%)	$ 1,300,000
Merchandise purchased during the year	$ 1,250,000

Ending accounts payable	$ 1,625,000
Less:Merchandise purchased during the year	$ 1,250,000
Add: Accounts payable payments	$ 1,414,000
Beginning accounts payable	$ 1,789,000

Answer is B $1,789,000

You can reach me over comment box if you have any doubts. Please rate this answer