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3. (Percentage of sales-spontaneous accounts) A company had sales of $4,500,000 last year and ended the year with $450,000 of accounts receivable, $200,000 of inventory,
3. (Percentage of sales-spontaneous accounts) A company had sales of $4,500,000 last year and ended the year with $450,000 of accounts receivable, $200,000 of inventory, and $300,000 of accounts payable-all of which are considered spontaneous accounts. Forecast the end-of-coming-year balances for these three accounts using the percentage-of-sales method if the sales forecast for the coming year is: a. $4,000,000 c. $5,000,000 b. $4,500,000 d. $6,000,000
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