13. Jill is the CFO of Summertime Adventures which is a seasonal firm specializi

Question

13. Jill is the CFO of Summertime Adventures which is a seasonal firm specializing in products related to water sports. The firm purchases inventory one month before it is sold and pays for its purchases 60 days after the invoice date. Sales are highest during July and August. Currently, Jill is preparing the cash disbursements section of the firm's cash budget. Which one of the following statements is supported by this information? A. Inventory purchases will be highest during the months of July and August. B. Inventory purchases will be highest during the months of May and June. C. Payments to suppliers will be highest during the months of June and July. D. Payments to suppliers will be highest during the months of July and August. E. Payments to suppliers will be highest during the months of August and September.

Explanation / Answer

D. Payments to suppliers will be highest during the months of July and August

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