Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started