A 2005 cash budget is being prepared for the purchase of Toyi, a merchandise item. Budgeted data are
|
Cost of goods sold for 2005 |
$300,000 |
|
Accounts payable 1/1/05 |
20,000 |
|
Inventory—1/1/05 |
30,000 |
|
12/31/05 |
42,000 |
Purchases will be made in twelve equal monthly amounts and paid for in the following month. What is the 2005 budgeted cash payment for purchases of Toyi?
- $295,000
- $300,000
- $306,000
- $312,000