The Warrenburg Antique Mall expects to make purchases of direct material in the first quarter of 2024 as shown. Purchases in December 2023 are expected to be $92,000. The company expects that 60 percent of a month's purchases will be paid in the month of purchase and 40 percent will be paid in the following month. Estimate cash disbursements related to purchases for each month of the first quarter of 2024. Budgeted purchases Payment on material purchased prior month Payment on material purchased this month Total cash payment A: D: G: B: E: H: 2023 Dec. $92,000 Answer Jan. $95,000 A D G C: F: 1: 2024 Feb. $120,000 B E H Mar. $85,000 C F

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter15: Working Capital Management
Section: Chapter Questions
Problem 10P: CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of...
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The Warrenburg Antique Mall expects to make purchases of direct material in the first quarter of
2024 as shown. Purchases in December 2023 are expected to be $92,000. The company expects
that 60 percent of a month's purchases will be paid in the month of purchase and 40 percent will
be paid in the following month. Estimate cash disbursements related to purchases for each month
of the first quarter of 2024.
Budgeted purchases
Payment on material purchased prior month
Payment on material purchased this month
Total cash payment
A:
D:
G:
B:
E:
H:
2023
Dec.
$92,000
Answer
Jan.
$95,000
A
D
G
C:
F:
2024
Feb.
$120,000
B
E
H
Mar.
$85,000
с
F
I
Transcribed Image Text:The Warrenburg Antique Mall expects to make purchases of direct material in the first quarter of 2024 as shown. Purchases in December 2023 are expected to be $92,000. The company expects that 60 percent of a month's purchases will be paid in the month of purchase and 40 percent will be paid in the following month. Estimate cash disbursements related to purchases for each month of the first quarter of 2024. Budgeted purchases Payment on material purchased prior month Payment on material purchased this month Total cash payment A: D: G: B: E: H: 2023 Dec. $92,000 Answer Jan. $95,000 A D G C: F: 2024 Feb. $120,000 B E H Mar. $85,000 с F I
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