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A company plans to purchase inventory for the first half of 2025 as follows: Month Purchases January $90,000 February $120,000 March $80,000 April $200,000 May $150,000 June $60,000 They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month after purchase. Based on this information, what are the forecasted June cash payments?

A company plans to purchase inventory for the first half of 2025 as follows: Month Purchases January $90,000 February $120,000 March $80,000 April $200,000 May $150,000 June $60,000 They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month after purchase. Based on this information, what are the forecasted June cash payments?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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A company plans to purchase inventory for the first half of 2025 as follows: Month Purchases January $90,000 February $120,000 March $80,000 April $200,000 May $150,000 June $60,000 They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month after purchase. Based on this information, what are the forecasted June cash payments?
Transcribed Image Text:A company plans to purchase inventory for the first half of 2025 as follows: Month Purchases January $90,000 February $120,000 March $80,000 April $200,000 May $150,000 June $60,000 They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month after purchase. Based on this information, what are the forecasted June cash payments?
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