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Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September $918,000 October $984,000 November $1,100,000 December
Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
September | $918,000 |
October | $984,000 |
November | $1,100,000 |
December | $780,000 |
At Adi, 35% of raw materials purchases are normally paid for in the month of purchase. The remaining 65% is paid for in the month following the purchase. How much cash should Adi expect to pay out for raw material purchases during November?
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