Your firm sells $2,000 worth of goods in December, $1,700 worth in January, $1,500 in February and $1,600 in March. Your cost is 60% of the retail price. You have a receivables period of 30 days and a payables period of 45 days. You buy your products one month prior to selling them. Which one of the following statements is correct given this information?
The accounts payable balance at the end of February is $750.
Your January disbursements to your suppliers are $960.
Your February disbursements to your suppliers are $900.
Your March disbursements to your suppliers are $930.
Your beginning accounts payable balance as of January 1st is $450© BrainMass Inc. brainmass.com June 4, 2020, 12:49 am ad1c9bdddf
The solution explains the correct alternative from the given options