Cash Disbursement
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Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year:
September 850,000
October 900,000
November 810,000
December 780,000
At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase.
Reference: 9-11
How much cash should Acmal expect to pay out for raw material purchases during the month of November?
862,500
832,500
202,500
877,500
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Solution Summary
The solution explains how to calculate the cash to be paid for the purchases.
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