I need step by step explanation of this general accounting question XYZ Manufacturing plans to purchase raw materials for the first quarter of 2025 as follows:January: $180,000 February: $220,000 March: $160,000 April: $240,000 May: $200,000The company pays 40% of inventory purchases in the month of purchase, 45% in the followingmonth, and 15% in the second month following purchase. Based on this information, what arethe forecasted April cash payments?a. $96,000b. $201,000c. $168,000d. $180,000

Step 1: Define Forecasted Cash PaymentsForecasted cash payments refer to the expected disbursements…

Answered: XYZ Manufacturing plans to purchase raw…

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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Prime manufacturing company expects to purchase... Please provide answer this general accounting question
Suppose that the Sales in December 2019 were 86,536. The sales are expected to grow by 9% in January 2020, by 14% in February 2020, and by 15% in March 2020. After that, the sales are expected to grow by 10%. The company's cash collection is as follows: 60% is collected in the same month and the remainder in the next month. What is the cash collection for June, 2020?
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