Assume a merchandising companys estimated sales for January, February, and March are $114,000, $134,000, and $124,000, respectively. Its cost of goods sold is always 35% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Multiple Choice

• $42,770

• $45,770

• $39,770

• $44,770

• Assume a company provided the following information:

  Gross margin percentage		40	%
  Sales	$	410,000
  Inventory balance, beginning of the year	$	20,000
  Inventory balance, end of the year	$	30,000
  Net income	$	10,000

  The inventory turnover is closest to:

  Garrison 17e Rechecks 2020-10-09

  Multiple Choice

• 12.

• 8.

• 10.

• 15.