Solved: During the month following and 10 the second month, Accounting Basics

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During the month following and 10 the second month

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Cedar Co. has forecast purchases to be $330,000 in June, $375,000 in July, $310,000 in August, and $270,000 in September. Purchases average 30% paid in cash, 70% are on credit. Credit purchases are paid 60% in the month of purchase, 30% during the month following, and 10% the second month following the purchase. Cash disbursements in September would be

a. 261,450
b. 113,400
c. 204,750
d. 285,750

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Accounting Basics: During the month following and 10 the second month

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