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    Cash disbursements for materials purchases

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    Streak Merchandising Company expects to purchase $ 60,000 of materials in July and $70,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth is paid for in the month following the month of purchase. In addition, a 2% discount is received for payments made in the month of purchase. How much will Augusts cash disbursements for materials purchases be?

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    Solution Preview

    Streak Merchandising Company expects to purchase $ 60,000 of materials in July and $70,000 of materials in August. Three-quarters of all purchases are paid for in the month of ...

    Solution Summary

    The response provides the steps to compute the cash disbursements for materials purchases

    $2.19

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