What average age of account payable is forecasted for the budget period? (Use the following data to answer this question)
Question 9 options:
Table Balance sheets for American Construction, Inc. Table 2- Income statements for American Construction, Inc Account 2001 2008 2008 Cash 390,000 160,000 Account 3 400,000 2,000,000 ccounts Receivable Earnings 10,000,000 300,000 205.2001 Retainage Receivable Cost of Construction Material Inventory 170,000 70,000 Labo 1.600,000 Under billings 500,000 250,000 Material 4,000,000 40,000 40,000 Other Current Assets 3200,000 Subcontracts Total Current Assets 800,000 2,725.200 Other Direct Cost 200,000 360,000 360,000 Equipment (Gross Total Direct Cost 9000,000 Less Aco. Dep 139 200 211.2001 Gross Profit 1,000,000 Equipment Net 220,800 145.800 Operating Expense Building Gross 60,000 60,000 ariable Operating Expense Less: Aco. Dep 9.000 12.000 Auto and Truc 150,000 Building Net 51.000 48.000 Communications 60,000 Land 47.000 47000001 100,000 terest (Work in progres 318.800 2438001 Total Non-Current Assets 237000 Insurance (Work in progre Total Assets 5118.800 2.969.000 20,000 Other Variable Expense Equities Total Variable Expense 567000 Liabilitie IFixed Operating Expense Account Payable 560,000 475,000 Contributions 5,000 Subcontracts Payable 1.270,000 400,000 72,000 Depreciation (Eguipment Retainage Payable 170,000 75,000 Depreciation Building 3,000 Over-billings 600,000 700,000 Insurance Equipment 29,000 300,000 150,000 Note Payable (current 20,000 Interest Equipment 58.000 14.000>1 Income Tax Payable Rent 44,000 200,000 100,000 Current Portion LT/D salarie 300,000 Other urent Liability 42.000 14.000 10,000 Other Fixed Expense 3200,000 1.900.000 Total Current Liability Total Fixed Operating Exp 4S3,000 318.800 145,000 Long Term Debt 1.050,000 Total Operating Expense Total Liability 4,018.800 2,045.0000 K50,000 Net Profit (before tax Net Worth Tax Ces% 214,000 Capital stock 340,000 700,000 36.000 t Profit (after tax Retained Earnings 260,000 224,000 Dividends Total Net Worth 1.100,000 924,0000 36.000 Retained earnings Total Equities 5118.800 2.969.000 Table 3. Monthly income statements (9/30/08 through 12/31/08 93008 10310 11300 12310 Account Earnings 1.200,000 900,000 600,000 300,000 Cost of Construction Labo 192,000 144,000 96,000 48.00000 Material 4s0,000 360,000 240,000 120,000 384.000 288.000 192.000 96400000 Subcontracts Other direct cost 1,080,000 810,000I 540,000 270,000 Total Direct Cost Gross Profit 120,000 90,000 60,000 30,000 Operating Expense 42.000 31.500 21.000 10500 ariable Fixed 58,000 58.000 58.000 58.00000 100,000 89,000I 70,000 68,500 Total Operating Expense (b) 20,000 500I K10,000 K38,500 Net Profit Tax (23 5600 140 K5320 210,730>d INet Profit at 14.400 360I K13680 27,720
