Use the information below to answer the following questions.
Saddle Company, a leather manufacturer, has a sales budget of $500,000 for February. The cost of sales is estimated to be 35% of sales. All materials purchased by Saddle Company are paid for in the month following the purchase. The beginning inventory for February is $10,000, and an ending inventory of $11,000 is desired. The trade payables balance at the beginning of February is $88,000.
-Refer to the information above. Projected cash payments to trade creditors for the month of February are:
A) $88,000
B) $98,000
C) $186,000
D) $100,000

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The Answer of Use the information below to answer the following questions.
Saddle Company, a leather manufacturer, has a sales budget of $500,000 for February. The cost of sales is estimated to be 35% of sales. All materials purchased by Saddle Company are paid for in the month following the purchase. The beginning inventory for February is $10,000, and an ending inventory of $11,000 is desired. The trade payables balance at the beginning of February is $88,000.
-Refer to the information above. Projected cash payments to trade creditors for the month of February are:
A) $88,000
B) $98,000
C) $186,000
D) $100,000

Use the Information Below to Answer the Following Questions