100)

Assume a merchandising companys estimated sales for January, February, and March are $111,000, $131,000, and $121,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What is the accounts payable balance at the end of February?

Multiple Choice

• $61,920

• $56,310

• $55,200

• $15,480