Acme Company’s budgeted monthly sales are as follows: April…
Acme Company’s budgeted monthly sales are as follows: April $230,000, May $220,000, and June $210,000. Sales are 60% cash and 40% on account. Acme collects all its receivables in the month following the sale. Cost of goods sold is budgeted at 70% of sales revenue. Acme maintains an ending inventory balance equal to $60,000, plus 50% of the next month’s cost of goods sold. All inventory purchases are paid 20% in the month of purchase and 80% in the following month. What is the budgeted accounts payable balance on May 31?