Problem:
A company pay for 25% of its purchases by credit terms n/60, 40% of its purchases by credit terms n/30, and the remaining 35% by a two-month advance payment.
Required:
The sources for June's cash paymetns schedule for direct materials would not include which of the following?
- June's schedule of expected cash payments for direct materials
- August's schedule of expected cash payments for direct materials.
- May's schedule of expected cash payments for direct materials.
- April's schedule of expected cash payments for direct materials.
Note: Please show how to work it out.