Edison Manufacturing expects to purchase $180,000 of inventory in April and $210,000 in May. The company pays 60% of purchases in the month of purchase and 40% in the following month. How much will May's cash disbursements for inventory purchases be?

Edison Manufacturing expects to purchase $180,000 of inventory in April and $210,000 in May. The company pays 60% of purchases in the month of purchase and 40% in the following month. How much will May's cash disbursements for inventory purchases be?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Need help with this question solution general accounting

Edison Manufacturing expects to purchase $180,000 of inventory in
April and $210,000 in May. The company pays 60% of purchases in
the month of purchase and 40% in the following month. How much
will May's cash disbursements for inventory purchases be?

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