Put Me To Bed, LLC is a retailer of mattresses. In the current year, actual May sales revenue totaled $ 600,000 and the cost of these sales was $100,000. June sales are expected to increase by 15% over the sales of May, and July sales are expected to be grow by 20% over the sales of June. August Sales are anticipated to be $450,000. Prices are determined in order to achieve a gross profit percentage of 55%. The company wants to maintain a safety stock in their ending inventory equal to 30% of next month's cost of sales. The ending inventory requirement was met at the end of May. Accounts payable consist solely of inventory purchases. Purchases from suppliers carry payment terms of net 30. What is Put Me To Bed's expected cash disbursement in August? Question 6 options: $141, 750 $274,275 S 177,625 $321,570 None of the above choices is correct.
Put Me To Bed, LLC is a retailer of mattresses. In the current year, actual May sales revenue totaled $ 600,000 and the cost of these sales was $100,000. June sales are expected to increase by 15% over the sales of May, and July sales are expected to be grow by 20% over the sales of June. August Sales are anticipated to be $450,000. Prices are determined in order to achieve a gross profit percentage of 55%. The company wants to maintain a safety stock in their ending inventory equal to 30% of next month's cost of sales. The ending inventory requirement was met at the end of May. Accounts payable consist solely of inventory purchases. Purchases from suppliers carry payment terms of net 30. What is Put Me To Bed's expected cash disbursement in August? Question 6 options: $141, 750 $274,275 S 177,625 $321,570 None of the above choices is correct.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Put Me To Bed, LLC is a retailer of mattresses. In the current year, actual May sales revenue totaled $
600,000 and the cost of these sales was $100,000. June sales are expected to increase by 15% over the
sales of May, and July sales are expected to be grow by 20% over the sales of June. August Sales are
anticipated to be $450,000. Prices are determined in order to achieve a gross profit percentage of
55%. The company wants to maintain a safety stock in their ending inventory equal to 30% of next
month's cost of sales. The ending inventory requirement was met at the end of May. Accounts payable
consist solely of inventory purchases. Purchases from suppliers carry payment terms of net 30. What is
Put Me To Bed's expected cash disbursement in August? Question 6 options: $141, 750 $274,275 S
177,625 $321,570 None of the above choices is correct.
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