Q3) Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 10% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $74,000.

Sales	January	February	March
Budgeted cost of goods sold	$ 42,000	$ 54,000	$ 62,000
Plus: Desired ending inventory	5,400
Inventory needed	47,400
Less: Beginning inventory	(4,200)
Required purchases	$ 39,000

Based on this information the total amount of expected purchases for February is

Multiple Choice

$43,200.

$63,200.

$54,800.

None of the answers is correct.

Q4) Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 10% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $74,000. All purchases are made on account with 20% of accounts paid in the month of purchase and the remaining 80% paid in the month following the month of purchase.

Sales	January	February	March
Budgeted cost of goods sold	$ 42,000	$ 54,000	$ 62,000
Plus: Desired ending inventory	5,400
Inventory needed	47,400
Less: Beginning inventory	(4,200)
Required purchases	$ 39,000

Based on this information the total cash paid in March to settle accounts payable is

Multiple Choice

$63,200.

$43,840.

$12,640.

$56,480.

Q5) Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 10% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $74,000. All purchases are made on account with 20% of accounts paid in the month of purchase and the remaining 80% paid in the month following the month of purchase.

Sales	January	February	March
Budgeted cost of goods sold	$ 42,000	$ 54,000	$ 62,000
Plus: Desired ending inventory	5,400
Inventory needed	47,400
Less: Beginning inventory	(4,200)
Required purchases	$ 39,000

Based on this information the amount of accounts payable appearing on the March 31 pro forma balance sheet is

Multiple Choice

$12,640.

$50,560.

$63,200.

None of the answers is correct.