Payne Company provided the following information relevant to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted)Cost of goods sold$80,000 $140,000 $180,000 $120,000 Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account. January Year 2 budgeted purchases are $150,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment in month following purchase.Budgeted cash payments for inventory in February Year 2 would be:
A. $159,000.
B. $152,600.
C. $99,000.
D. $132,600.
Answer: A
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John Helm, an architect, designed and built a large home in 1989. Anne Marie Grossman was a co-owner of the home and property with Helm. Because the home was built on hilly terrain, Helm used a pier and grade-beam foundation. Helm and Grossman moved into the home in 1990 and listed it for sale with California Prudential Realty with Marti Gellens-Stubbs as the listing agent. When Ms
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