Name: ID: A 23. Firefly Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month Cash sales are 20 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 35 percent in the month after the sale, and the remaining 15 percent two months after the sale. Sales for the quarter are projected as follows: January, $60,000, February, $30,000; and March, $90,000. Accounts receivable on December 31 were $45,000. Firefly Manufacturing Company would expect to have an accounts receivable balance on March 31 of a. $45,000. b. $55,500. c. $39,600. d. $90,000. Figure 8-7 Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given below: The June 30th balance sheet follows: Cash Accounts receivable Inventory Building and equipment (net) $ 25,000 Accounts payable 110,000 Capital stock 54,000 Retained earnings 250,000 $ 45,000 300,000 94,000 Actual sales for June and budgeted sales for July, August, and September are given below: June uly August $137,500 360,000 400,000 320,000 Sales are 20 percent for cash and 80 percent on credit. All credit sales are collected in the month following the sale. There are no bad debts. The gross margin percentage is 40 percent of sales. The desired ending inventory is equal to 25 percent of the following month's sales. One fourth of the purchases are paid for in the month of purchase and the others are purchased on account and paid in full the following month. The monthly cash operating expenses are $43,000, and the monthly depreciation expenses are $7,000. Refer to Figure 8-7. What is the balance of the accounts payable at the end of July? a. $55,500 b. $93,000 c. $120,000 d. $166,500 24