What will accounts payable be at the end of april

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Reference no: EM133610215

Question: Sporting Inc. is a distributor which sells one product for $100 per unit. Sporting pays $60 to buy the product. In addition, fixed costs total $60,000 per month. Sporting wishes to maintain an inventory at the end of each month equal to 30% of the next month's projected sales. Purchases are paid in the month after purchase. Sporting makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale. Budgeted monthly sales in units for the first five months of 2021 are as follows: January 10,000 units February 15,000 units March 18,000 units April 20,000 units May 16,000 units Refer to Exhibit 9-1. What will accounts payable be at the end of April?

Reference no: EM133610215

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