Assume a merchandising company's estimated sales for January, February, and March are $100,000, $120,000, and $110,000,...

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Assume a merchandising company's estimated sales for January, February, and March are $100,000, $120,000, and $110,000, respectively. Its cost of goods sold is always 40% of its sales. The company always maintains ending merchandise inventory equal to 10% 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 ar the cash disbursements for merchandise purchases that would appear in the company's cash budget for February? O $45,500 O $44,500 O $39,500 O42.500 Assume a merchandising company's estimated sales for January, February, and March are $100,000, $120,000, and $110,000, respectively. Its cost of goods sold is always 40% of its sales. The company always maintains ending merchandise inventory equal to 10% 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 ar the cash disbursements for merchandise purchases that would appear in the company's cash budget for February? O $45,500 O $44,500 O $39,500 O42.500

Answer rating: 100% (QA)

SOLUTION Viev 42500 EXPLANATION Particular December January February March Estimated sa... View the full answer