Need help with this question The Fairlane Company expects purchases for 2017 to be $320,000 in thefirst quarter, $480,000 in the second quarter, $380,000 in the third quarter,and $600,000 in the last quarter. All purchases are made on credit, 90% ofpurchases are paid for in the quarter purchased; 10% are paid for in thequarter following purchase. Other cash expenses paid each quarter are:taxes, $80,000; wages, $240,000; rent, $32,000; interest, $8,000; andmiscellaneous, $6,000. What will be the planned cash disbursement for thesecond quarter of 2017?A. $798,000B. $846,000C. $830,000D. $836,000

Step 1: Define Cash DisbursementCash disbursement refers to the cash outflow during the period. This…

Answered: The Fairlane Company expects purchases…

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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Planet Company purchased goods worth $50,000 in July and expects to purchase goods worth $70,000 in August. Planet typically pays for 35% of purchases in the month of purchase and 65% in the following month. What are Planet Company's total expected cash disbursements for purchases in the month of August?
The Dilly Company (DC) began operations on December 1, 2021. All sales are credit sales with 50% collected in the month of sale, 40% in the month following and 10% in the second month following the sale. DC has estimated sales at $1,800,000 for December, $1,500,000 for January, $1,700,000 for February and $1,600,000 for March. The estimated cash collections from customers in the month of February will be?
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