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Livanos, Inc.reports all its sales on credit, and pays operating costs in the month incurred.Amounts for 2020 are:

-Customer amounts on account are collected 70% in the month of sale and 30% in the following month.
-Cost of goods sold is 60% of sales.
-Livanos purchases and pays for merchandise 40% in the month of acquisition and 60% in the following month.
-Operating expenses are: Salaries, $50,000; Depreciation, $12,000; Rent, $15,000; and Utilities, $14,000.
-Accounts payable is used only for inventory acquisitions.
-How much is Livanos' budgeted balance for Accounts Payable at May 31, 2020?
A)$124,800
B)$72,000
C)$51,200
D)$76,800

Question

Use the following information for questions 
Livanos, Inc.reports all its sales on credit, and pays operating costs in the month incurred.Amounts for 2020 are:
  
-Customer amounts on account are collected 70% in the month of sale and 30% in the following month.
-Cost of goods sold is 60% of sales.
-Livanos purchases and pays for merchandise 40% in the month of acquisition and 60% in the following month.
-Operating expenses are: Salaries, $50,000; Depreciation, $12,000; Rent, $15,000; and Utilities, $14,000.
-Accounts payable is used only for inventory acquisitions.
-How much is Livanos' budgeted balance for Accounts Payable at May 31, 2020?
A)$124,800 
B)$72,000 
C)$51,200 
D)$76,800

Quizplus · Accepted Answer

The budgeted balance for Accounts Payable at May 31, 2020, is calculated based on the information provided, which typically involves understanding the company's expected expenses and payments. Without specific details, the correct answer is chosen based on the question's context.

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