ejected at the required rate of return. E) payback period investment/annual cash flows = $12,000/$3500 = 3.42 years Question 3, (Budgeting) 25 Marks Higym Co's fiscal year begins on April 1. The following is an extract from a trial balance at May 31, 2019: Cash $3,500 DR Accounts Receivable$27,200 Bad Debt Allowance Inventory Merchandise $16,000 Accounts Payable Merchandise$7,000 CR $2,240 I Data concerning company's purchase of merchandise inventory: Purchase price per unit $8 75% of any month's purchases ae payable in the month of purchase while the rest is due and paid for in the following month. At end of each month the company's policy is to have an inventory equal to 50% of the following month's unit sales. 301 E