Below are budgeted data for Flour International: Inventory purchases October $20

Question

Below are budgeted data for Flour International:

Inventory
purchases

October

$20,000

November

$60,000

December

$70,000

30% of purchases are paid in the month of the purchases and 70% in the following month. The cash paid for inventory purchase is December is:

Below are budgeted data for Flour International:

Inventory
purchases

October

$20,000

November

$60,000

December

$70,000

30% of purchases are paid in the month of the purchases and 70% in the following month. The cash paid for inventory purchase is December is:

Explanation / Answer

Cash paid for inventory purchase in december = (60000 * .70 ) +(70000 *.30)

                                 = 42000+ 21000

                               = $ 63000

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