Compute the estimated total cash disbursements during July
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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Question
The following information is from Teas Window’s financial records. The company buys its
raw material on account and pays:
• 60% of accounts payable during the month of purchase
• 35% in the first month after purchase
• 5% in the second month after purchase
Month Purchases
April 50,000
May 52,000
June 60,000
July 72,000
Compute the estimated total cash disbursements during July. Show your calculations
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