Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rishi Sunak Manufacturing Pte. Ltd. is preparing its budget for next year. The company estimates that it will be making the following raw materials purchases

Rishi Sunak Manufacturing Pte. Ltd. is preparing its budget for next year. The company estimates that it will be making the following raw materials purchases in the last five months of 2021: $200,000 in August, $220,000 in September, $250,000 in October, $280,000 in November and $240,000 in December. The company anticipates that it will pay 55% of what is owed one month after the month of purchase, 30% of what is owed two months after the month of purchase and the remaining 15% three months after the month of purchase. What figure will be presented in the companys cash budget for payments for raw materials purchases in December 2021?

*
5 points
$233,500
$253,500
$262,000
$403,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions