Opening Account Balances - NEW Approved Bank Loan of $50,000, 5.9% APR on a 3 year term - The business currently holds a cash balance of $9,600 - Company holds $5,000 in inventory - The business has Prepaid the first two months of rent at $12,000 per month - All appliances: estimated total value of $90,000 - $18,000 in Glassware and China - Furniture and Fixtures, estimated value of $47,000 - Accounts Payable has a balance of $6,987 End of Year 1 - Revenues are as follows; - $824,951 in wine sales - $398,124 in cheese sales - $ 102,310 in merchandise sales - We give 15% discounts to students on all cheese and merchandise (not on wine), who are 30% of our clientele! - Cost of wine sold is 18% - Cost of cheese sold is 36% - All Salaries and Wages paid at $447,467 - Rent is paid - Other operating expenses were $256,120 - 10% increase in inventory pars planned per year - Loan Payments - Accounts Payable is paid from last year - New Accounts payable balance is $11,201 - 50% of Profit paid out in dividends - Depreciation of Appliances at 12% per year - Depreciation of Glassware & China at 22% per year - Depreciation of Furniture at 8% per year - tax rate is 18% Forcasted End of Year 2 - assumed growth rate is 10% - Budget for Salaries and Wages in Year 2 is $500,000

7) How much did the company pay in Accounts Payable - PAID in Year 2? Group of answer choices

$11,201.00

$0.00

$6,987.00

$3,127.47