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Good Morning Sunshine is a wholesaler of coffee makers. In the current year, actual March sales revenue totaled $200,000. April sales are expected to
Good Morning Sunshine is a wholesaler of coffee makers. In the current year, actual March sales revenue totaled $200,000. April sales are expected to increase 10% above March sales. May sales are expected to increase 10% above April sales. June sales are expected to decrease 5% below May sales. Prices are set to achieve a 60% gross profit. The company wants to maintain an ending merchandise inventory equal to 15% of the next month's cost of sales. The ending inventory requirement was met at the end of March. Accounts Payable consist solely of inventory purchases. All invoices from the suppliers are dated as of the end of the month of purchase and carry payment terms 2/10, net 30. Assuming Good Morning Sunshine takes full advantage of purchase discounts offered, what are the company's expected cash disbursements in May to its supplier? O A. $87,533.60 B. $89,474.00 C. $131,300.40 D. $86,240.00 O E. $94,152.52
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