Question
1.A company plans to purchase inventory for the second half of 2014 as follows: July$100,000 August$75,000 September$225,000 October$125,000 November$250,000 December$30,000 They usually pay 50% of
1.A company plans to purchase inventory for the second half of 2014 as follows:
July$100,000
August$75,000
September$225,000
October$125,000
November$250,000
December$30,000
They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
Based on this information, what are the forecasted total 2014 cash payments for inventory purchased in the second half of 2014?
a.$705,000
b.$752,500
c.$790,000
d.$805,000
I am coming up with $476,250
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Fundamental Accounting Principles Volume I
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305821
