Metro, Inc. sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter 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 Based on this information the total cash paid in March to settle accounts payable is
$39,000.
$15,500.
$62,000.
$54,500.
1a. The amount of accounts payable appearing on the March 31 pro forma balance sheet is
$15,500.
$46,500.
$62,000.
None of the answers is correct.

Regardless of whether they are a sole proprietorship, a business partnership, a corporation, a private limited company, or another type of organization like the government or a not-for-profit entity, a balance sheet is a summary of the financial positions of a person or an organization in financial accounting.

A balance sheet is a type of financial statement that lists a company's assets and liabilities as of a particular date. It is one of the three main financial statements that are used to evaluate a company's performance, along with the income statement and cash flow statement.

A balance sheet is a financial statement that lists an organization's assets, liabilities, and shareholders' equity. A certain date is used to construct the balance sheets.

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