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Can someone explain the answers to questions 68 and 69 in detail please? 68. A company budgeted the following purchases for raw materials: Month January

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Can someone explain the answers to questions 68 and 69 in detail please?

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68. A company budgeted the following purchases for raw materials: Month January February March April May June July Budget $10,000 $20,000 $25,000 $22,000 $27.000 $30,000 $24.000 The company has a policy of paying for 40% of the purchases in the month of purchase, 35% in the month following the purchase, and 25% in the second month following the purchase. Based on this information, what are the budgeted cash disbursements for May? Your Correct Answer Answer $18,500 $24,750 $25,050 $27,300 69 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? Your Correct Answer Answer $705,000 $752,500 ~ $790,000 $805,000

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