Prime Manufacturing Company expects to purchase $90,000 of materials in November and $120,000 of materials in December. Seventy percent of all purchases are paid for in the month of purchase, and the remaining thirty percent are paid in the month following the purchase. How much will December's cash disbursements for materials purchases be? Options: A) $120,000 B) $105,000 c) $111,000 D) $108,000

Prime Manufacturing Company expects to purchase $90,000 of materials in November and $120,000 of materials in December. Seventy percent of all purchases are paid for in the month of purchase, and the remaining thirty percent are paid in the month following the purchase. How much will December's cash disbursements for materials purchases be? Options: A) $120,000 B) $105,000 c) $111,000 D) $108,000

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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