Weisbro and Sons purchase their inventory one quarter prior to the quarter of sale. The purchase price is 60 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of quarter one is $28,800. What is the amount of the expected disbursements for quarter two given the following expected quarterly sales?
Quarter 1: $82,000
Quarter 2: $123,000
Quarter 3: $115,000
Quarter 4: $124,000
PICK ONE BELOW: $66,000 $49,200 $72,200 $70,600 $74,000
ABC, Inc. has a beginning receivables balance on January 1st of $680. Sales for January through April are $440, $470, $550 and $570, respectively. The accounts receivable period is 60 days. How much did the firm collect in the month of March? Assume that a year has 360 days. Pick one below:
$440 $470 $680 $550 $570
On average your firm sells $31,500 of items on credit each day. Your average inventory period is 16 days and your operating cycle is 39 days. What is your average accounts receivable balance? Pick one below:
$1,449,000 $535,500 $504,000 $1,228,500 $724,500