Metro, inc. sells backpacks.
the company's accountant is preparing the purchases budget for the first quarter of operations.
metro maintains ending inventory at 20% of the following month's expected cost of goods sold.
expected cost of goods sold for april is $70,000.
all purchases are made on account with 25% of accounts paid in the month of purchase and the remaining 75% paid in the month following the month of purchase:

sales january february march
budgeted cost of goods sold $40,000 $50,000 $60,000
plus: desired ending inventory 10,000
inventory needed 50,000
less: beginning inventory (8,000)
required purchases $42,000

required:

1. based on this information, the total cash paid in march to settle accounts payable is:

a) $39,000.
b) $15,500.
c) $62,000.
d) $54,500.

2. the amount of accounts payable appearing on the march 31 pro forma balance sheet is:

a) $15,500.
b) $46,500.
c) $62,000.
d) none of the above.

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.