Question
Super Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below: Super Drive, Inc.
Super Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below:
Super Drive, Inc. | |
Statement of Financial Position | |
For the year ended November 30 | |
Assets: | |
Cash | 52,000 |
Accounts receivable | 150,000 |
Inventory | 315,000 |
Property, plant, and equipment | 1,000,000 |
Total assets | 1,517,000 |
Liabilities and stockholders' equity: | |
Accounts payable | 175,000 |
Common stock | 900,000 |
Retained earnings | 442,000 |
Total liabilities and stockholders' equity | 1,517,000 |
Additional information regarding Super Drive's operations appear below: * Sales are budgeted at 520,000 for December and 500,000 for the upcoming January. * Collections are expected to be 60% in the month of sale and 40% in the month following sale. There are no bad debts. * 80% of the disk drive components are purchased in the month prior to the month of the sale, and 20% are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold. * Payment for components purchased is made in the month following the purchase. * Assume that the cost of goods sold is 80% of sales. The balance in accounts payable on the budgeted balance sheet for December 31 should be:
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