Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Put Me To Bed, LLC is a retailer of mattresses. In the current year, actual May sales revenue totaled $ 6 0 0 , 0

Put Me To Bed, LLC is a retailer of mattresses. In the current year, actual May sales revenue totaled $600,000 and the cost of these sales was $100,000. June sales are expected to increase by15% over the sales of May, and July sales are expected to be grow by20% over the sales of June. August Sales are anticipated to be $450,000. Prices are determined in order to achieve a gross profit percentage of55%.
The company wants to maintain a safety st ock in their ending inventory equal to30% of next month's cost of sales. The ending inventory requirement was met at the end of May. Accounts payable consist solely of inventory purchases. Purchases from suppliers carry payment terms of net 30. What is Put Me To Bed's expected cash disbursement in August?
Question 6 options:
$141,750
$274,275
$177,625
$321,570
None of the above choices is correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Vector Mechanics for Engineers Statics and Dynamics

Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self

11th edition

73398241, 978-0073398242

Students also viewed these Accounting questions