Please show work if you can as I would like to understand how to do this problem
ID: 2419235 • Letter: P
Question
Please show work if you can as I would like to understand how to do this problem. Thank you!
ulpbration expects to receive from credit 21. Solving for cash payments (Appendix 9.1). Alabama Corporation purchases raw materi- s on account from various suppliers. It normally pays for 70 percent of these in the urchased, 20 percent in the first month after purchase, and the remaining 10 after purchase. Raw materials purchases during the last month p percent in the second month five months of the year are expected to be August.... September. October.. November... December .. $1,000,000 900,000 1,250,000 1,750,000 950,000 December... Compute the expected amount of cash payments to suppliers for the months of October, November, and December.Explanation / Answer
Alabama Corporation Purchase details August September October November December Raw materials Purchased 1,000,000 900,000 1,250,000 1,750,000 950,000 Payment schedule Payment of Purchase of August 700,000 200,000.00 100,000.00 Payment of Purchase of Sep 630,000.00 180,000.00 90,000 Payment of Purchase of Oct 875,000.00 250,000 125,000 Payment of Purchase of Nov 1,225,000 350,000 Payment of Purchase of Dec 665,000 Total Payment in the month $ 1,155,000 $ 1,565,000 $ 1,140,000