Reed Merchandising Company expects to purchase $90,000 of materials in July and
ID: 2381416 • Letter: R
Question
Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?Question 33 options: $67500 $78750 $101250 $105000 Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
$67500 $78750 $101250 $105000 $67500 $78750 $101250 $105000 $67500 $78750 $101250 $105000
Explanation / Answer
.$105,000 X .75 = $78,750 from August purchases
$90,000 X .25 = $22,500 from July purchases
Total: $101,250