FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Monthly sales for the Garden Centre are shown in the table below.
|
Garden Centre |
|
| Month | Sales |
| January | $20,000 |
| February | $22,000 |
| March | $26,000 |
| April | $30,000 |
| May | $35,000 |
| June | $40,000 |
The Garden Centre purchases inventory two months in advance. They pay for 50% of the merchandise the month after the purchase, and the other 50% two months after the purchase. The Garden Centre’s gross margin is 40%. What are the Garden Centre’s payments to suppliers in March?
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