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Company A plans to begin their operations in January of 2016 and has forecasted the following inventory purchases, all on credit: January 2016$200,000 February 2016$250,000
Company A plans to begin their operations in January of 2016 and has forecasted the following inventory purchases, all on credit:
January 2016$200,000
February 2016$250,000
March 2016$300,000
April 2016$325,000
They project that they will pay for 25% of their monthly inventory purchases in the month of the purchase, 35% in the month following the purchase, and 40% in the second month following the purchase.
What is the forecasted cash disbursement for inventory purchases for the four-month period (January through April)?
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