Use the percent of sales method to forecast next year’s accounts payable. - 3437

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Use the percent of sales method to forecast next year’s accounts payable. Current year sales are $24,500,000 and sales are expected to rise by 25%. The firm’s accounts payable balance is $1,701,600. What is the projection for next year’s accounts payable?

a. $1,000,600

b. $2,127,000

c. $3,981,250

d. $6,125,000 

Solution Description

c Current year sales are $24,500,000 and sales are expected to ris