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cash disbursements

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Dokken& Dietrich's Donut company pays 25% of its inventory purchases in the month of the purchase and the remainder in the following month. The company's inventory purchases totaled $840,000 in October, $920,000 in November, and $600,000 in December. The company also paid for new equipment with a total cost of $380,000 in November and made a tax payment of $130,000 in December. Salaries and wages were $300,000 in November and $275,000 in December.
Determine the firm's cash disbursements for November and December

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Solution Summary

The expert determines the firm's cash disbursement for November and December.

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