Question: Question 47 12 points) Trivle, Inc. forecasts total monthly sales and total monthly purchases for the first three months of 2021 to be as follows:

 Question 47 12 points) Trivle, Inc. forecasts total monthly sales and

Question 47 12 points) Trivle, Inc. forecasts total monthly sales and total monthly purchases for the first three months of 2021 to be as follows: Total Monthly Month Total Monthly Sales Purchases January $9,000 $6,600 February $14,800 $9,000 March $19,600 $10,600 Assuming the following: 75 percent of all sales are on credit and 25 percent of all sales are cash sales Cash sales are collected immediately and for all credit sales, the average collection period (ACP) will be 40 days for this period, COGS for Trivle, Inc. will be 60% per month The accounts payable day's period will be 20 days for each of these months. Sales, collections and purchases will be evenly distributed throughout each month (assume 30 days per month) Tho December 30, 2020 accounts recevable balance was $4,000 The December 30, 2020 accounts payable balance was $1,000 What will Trivle Inc.'s accounts payable balance be on February 30 (l.c., the last day in February)? Record your answer as a positive dollar amount rounded to decimal places, but do not include a dollar sign or any commas in your answer. For example, record $2,321,204.832 as 2321205 Your

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!