Question

O . Please use the following projections for Top-A1 Inc.: Total sales of $146,000 Cost of goods sold equal to 77.2 percent of sales • Total expenses equal to 13.8 percent of sales • Tax rate of 35 percent Beginning equity of $53,500 • Beginning inventory of $12,600 Age of ending inventory of 58 days • Minimum cash balance of $10,100 • Accounts receivable of 31 days • Fixed assets of $57,800 Accounts payable of 35 days Calculate the projected purchases for Top-A1. Purchases will be $ 146000. (Round to the nearest dollar.)

Answer 1

Answer:

Cost of Goods Sold = 77.2%*Sales
Cost of Goods Sold = 77.2% * $146,000
Cost of Goods Sold = $112,712

Ending Inventory = Cost of Goods Sold *(Age of Ending Inventory /365 days)
Ending Inventory = $112,712 * (58/365)
Ending Inventory = $17,910

Cost of Goods Sold = Beginning Inventory + Purchases – Ending Inventory
$112,712 = $12,600 + Purchases - $17,910
Purchases = $112,712 - $12,600 + $17,910
Purchases = $118,022