Bavarian Brew's schedule of projected cash disbursement Jan Feb Mar Apr Sales $510 $870 $450 $600 The company's purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the remainder in the month after that. The company's wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April. The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April. In addition, the company will pay a $175 dividend in February. What is the value of the Bavarian Brew's accounts payable at the end of February? Assume the company had sales of $490 in December. a. $869.00 b. $738.50 c. $688.50 d. $638.50

Bavarian Brew's schedule of projected cash disbursement Jan Feb Mar Apr Sales $510 $870 $450 $600 The company's purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the remainder in the month after that. The company's wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April. The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April. In addition, the company will pay a $175 dividend in February. What is the value of the Bavarian Brew's accounts payable at the end of February? Assume the company had sales of $490 in December. a. $869.00 b. $738.50 c. $688.50 d. $638.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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