The Snow Globe Emporium sells snow globes. The forecasted first quarter sales for The Snow Globe Emporium is shown in the top row of the table. The Snow Globe Emporium buys the snow globes from a distributor for $5 and sells them for $8
All purchases are made on credit one month in advance of sales and are paid for the month following the purchase. Assume that The Snow Globe Emporium has a starting accounts payable balance of $15,000 at the beginning of February. What are the Snow Globe Emporium's Ending Accounts Payable in February?
Sales and Purchase Forecast
The Snow Globe Emporium
January February March April
Sales Forecast $32,000 $48,000 $60,800 $75,200
Purchases from Suppliers ($)
Payments to Suppliers
Beginning Accounts Payable $15,000
Plus: Purchases
Less: Payments
Ending Accounts Payable $15,000
A) $15,000
B) $23,000
C) $23,500
D) $24,000
E) $26,500
B
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