ABC Companys raw materials purchases for June, July, and August are budgeted at $35,000, $25,000, and $50,000,
Question:
ABC Company’s raw materials purchases for June, July, and August are budgeted at $35,000, $25,000, and $50,000, respectively. Based on past experience, ABC expects that 60% of a month’s raw material purchases will be paid in the month of purchase and 40% in the month following the purchase.
Required:
Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August.
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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