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Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September $838,000 October $1,046,000 November $852,000 December
Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
September | $838,000 |
October | $1,046,000 |
November | $852,000 |
December | $884,000 |
At Adi, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Adi expect to pay out for raw material purchases during November?
$571,500
$784,500
$213,000
$997,500
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