Metro, inc. sells backpacks. the company's accountant is preparing the purchase budget for the first quarter operations. metro maintains ending inventory at 20% of the following month's expected cost of goods sold. the expected cost of goods sold for april is $70,000. all purchases are made on an account with 25% of accounts paid in the month of purchase and the remaining 75% paid in the month following the month of purchase. 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.
1a. 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 answers is correct.