January February Inventory purchases budget in units 12,000 15,000 Each unit costs $5. ABC pays 20% in the month of purchase and 80% in the following the purchase. Accounts payable at December 31 = $25,000 How much cash will be disbursed for inventory purchases in February ? Select one: $88.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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January
February
Inventory purchases budget in
units
12,000
15,000
Each unit costs $5. ABC pays 20% in the month of purchase and 80% in the
following the purchase.
Accounts payable at December 31 = $25,000
How much cash will be disbursed for inventory purchases in February?
Select one:
$88,000
$48,000
$27,000
$63,000
Transcribed Image Text:January February Inventory purchases budget in units 12,000 15,000 Each unit costs $5. ABC pays 20% in the month of purchase and 80% in the following the purchase. Accounts payable at December 31 = $25,000 How much cash will be disbursed for inventory purchases in February? Select one: $88,000 $48,000 $27,000 $63,000
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