Assume a merchandising company's estimated sales for January, February, and March are $102,000, $122,000, and...
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Accounting
Assume a merchandising company's estimated sales for January, February, and March are $102,000, $122,000, and $112,000, respectively. Its cost of goods sold is always 35% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month's cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What is the accounts payable balance at the end of February?
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