Cash Disbursements for Purchases [LO 2] Mississippi Retailers expects to make in
ID: 2668415 • Letter: C
Question
Cash Disbursements for Purchases [LO 2]Mississippi Retailers expects to make inventory purchases in the next quarter as follows:
April $44,000
May 51,000
June 70,000
Prior experience has shown that 40 percent of a month’s purchases are paid in the month of purchase and 60 percent are paid in the month following purchase. March purchases were $40,000.
Estimate cash disbursements related to purchases for April, May, and June.
April May June
Cash disbursements for purchases
Payment of March purchases $
Payment of April purchases
Payment of April purchases $
Payment of May purchases
Payment of May purchases $
Payment of June purchases
$
$
$
Explanation / Answer
April
May
June
Payment of March
24,000
Payment of April
17,600
Payment of April
26,400
Payment of May
20,400
Payment of May
30,600
Payment of June
28,000
41,600
46,800
58,600
April
May
June
Payment of March
24,000
Payment of April
17,600
Payment of April
26,400
Payment of May
20,400
Payment of May
30,600
Payment of June
28,000
41,600
46,800
58,600
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