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In preparing a cash budget, a company estimates the following purchases of raw material: R10 000 for January, R12 000 for February, R15 000 for
In preparing a cash budget, a company estimates the following purchases of raw material: R10 000 for January, R12 000 for February, R15 000 for March and R20 000 for April. Assume 30% of the purchase was for cash and the balance of 70% was on credit, and assume further that 50% of the credit purchase was paid one month after the purchase and the remainder of 50% was paid in the second month following the purchase. How much will be paid to creditors in April for purchases of raw material? Select one:
a. R10500
b. R10000
c. R9450
d. R17 500
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