Question

13 & 14 pls

Use the following information to answer questions 15 and 16: Total Recall Company's operational data are below - Sales are budgeted at $260,000 for November, $240.000 for December, and $210,000 for January. A sales are credit sales. Collections are expected to be 80% in the month of sale. 19% in the month following the sale, and 1 uncollectible - The cost of goods sold is 65% of sales. The company desires to have an endine merchandise inventory at the end of each month equal to of the next month's cost of goods sold Payment for merchandise is made in the month following the purchase - Other monthly expenses to be paid in cash are $20,300 - Monthly depreciation is $20,000 - Ignore taxes #15. December cash disbursements for merchandise purchases would be (choose the closest answer): a) $141,700 b) $149,500 c) $157,300 d) $161,200 e) $218,000 #16. Accounts payable at the end of December would be choose the closest answer): a) $81,900 b) $141,700 c) $144,300 d) $149,500 e) $218,000

15&16*

Answer 1

	November	December	January
Sales	260000	240000	210000
Cost of goods sold (65% * sales)	169000	156000	136500
Ending Inventory (60% * COGS)	93600	81900
Less:Opening inventory	101400	93600
Budgeted Purchases	161200	144300
Ques 15
Option D
in december ,november purchases will be paid so $161200
will be paid in december
Ques 16
Option C
Accounts payable at end of december	144300