Dokken & Dietrich's Donut Company pays for 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.© BrainMass Inc. brainmass.com October 9, 2019, 7:33 pm ad1c9bdddf
This solution is comprised of a detailed explanation to determine the firm's cash disbursements for November and December.