Acme Company is a wholesaler that makes all inventory sales…
Acme Company is a wholesaler that makes all inventory sales and inventory purchases on account. All of Acme’s accounts payable relate to inventory purchases. During the current month, Acme collects $135,000 of cash from its customers and its accounts receivable balance increases by $5,000. Acme also pays $109,000 of cash to its suppliers of inventory and its accounts payable balance increases by $7,500. Acme’s merchandise inventory balance does not increase or decrease during the month. What is Acme’s gross margin? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).