Harborview Ltd. prepared the following purchases budget: Month Purchases July $52,000 August $46,000 September $58,000 October $64,000 November $66,500 All purchases are paid as follows: 20% two months after purchase, 55% in the following month, and 25% in the month of purchase. What are the cash disbursements in November to account for the October purchases at Harborview Ltd.?

Harborview Ltd. prepared the following purchases budget: Month Purchases July $52,000 August $46,000 September $58,000 October $64,000 November $66,500 All purchases are paid as follows: 20% two months after purchase, 55% in the following month, and 25% in the month of purchase. What are the cash disbursements in November to account for the October purchases at Harborview Ltd.?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and 60% in the month following the purchase. If purchases are budgeted to be 40,000 for August and 36,000 for September, what are the budgeted cash payments for purchases on account for September?
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