Here, company has sold 3,000,000 worth inventories. But, it won't be replacing 160,000 worth of it. That's why closing stock has come down by 160,000. So, company is expected to purchase 2,840,000 worth inventory.
At the same time, payable related to inventory has come down by 275,000. It means company will be paying 275,000 from previous period during current period. So, it should be added to 2,840,000. Here comes the answer 3,115,000.
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Waseem
Financial Analyst
Waseem
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Original Message:
Sent: 01-01-2022 11:19 PM
From: Nupur Mahajan
Subject: Preparing the budget - Part 1 - Section B question
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Nupur Mahajan
<maskemail>nupur1188@...</maskemail>
Hartford CT United States
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