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Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September...... October. November December $800,000 $920,000 $840,000
Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September...... October. November December $800,000 $920,000 $840,000 $760,000 At Adi, 30% of raw materials purchases are normally paid for in the month of purchase. The remaining 70% is paid for in the month following the purchase. How much cash should Adi expect to pay out for raw material purchases during November? $896,000 $392,000 $644,000 $252,000
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