Question - Cave Hardware's forecasted sales for April, May, June and July are $200,000, $230,000, and $240,000; respectively. Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 22% in the month of purchase and 78% in the following month.
What is the balance of accounts payable on the June 30 budgeted balance sheet at Cave Hardware?
A) $114,075
B) $108,225
C) $146,250
D) $32,175