Calculating accounts payable for end of year
Not what you're looking for?
I need help understanding this question:
Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year:
September $850,000
October $900,000
November $810,000
December $780,000
At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase.
In Acmal's budgeted balance sheet at December 31, at what amount will accounts payable be shown? (Assume that accounts payable is only used for raw material purchases.)
A) $585,000
B) $607,500
C) $780,000
D) $802,500
Purchase this Solution
Solution Summary
The solution explains how to calculate the balance in the accounts payable account at the end of the year
Solution Preview
In December the outstanding payments (accounts payable) would be ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Operations Management
This quiz tests a student's knowledge about Operations Management
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media