Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September$830,000October$940,000November$860,000December$780,000At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.In Acti's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?
A. $468,000
B. $588,000
C. $780,000
D. $564,000
Answer: A
You might also like to view...
The difference between the cost of an asset and the accumulated depreciation for that asset is called
A. Depreciation Expense. B. Depreciation Value. C. Prepaid Depreciation. D. Unearned Depreciation. E. Book Value.
Within a firm, the required return on debt must be less than the required return on equity
Indicate whether the statement is true or false
Mead, Inc. may invest $20 million in a new fiber optic project. Due to market conditions, annual production costs and revenues are forecasted at $10 million and $8 million, respectively, starting next year
Revenues are expected to grow at 4.0% and interest rates are 6.0%. What is the change in value if the project is commenced in 5 years instead of today? (Use static analysis.) A) $8.84 million B) $10.84 million C) $12.84 million D) $14.84 million
The reduced cost for a positive decision variable is 0
Indicate whether the statement is true or false