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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