Answered

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Thomas Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 25 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $50,000, and an ending inventory of $64,000 is desired. Beginning accounts payable is $160,000. For Thomas Company, the ending accounts payable should be:

Sagot :

Answer:

the ending account payable is $264,000

Explanation:

The computation of the ending account payable is shown below;

= Required material + ending inventory - beginning inventory

= ($1,000,000 × 25%) + $64,000 - $50,000

= $264,000

Hence, the ending account payable is $264,000

Basically applied the above formula to calculate the ending account payable

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