What are the budgeted cash disbursements for may

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Reference no: EM132562030

Question 1 - A company budgeted the following purchases for raw materials:

Month

January

February

March

April

May

June

July

Budget

$10,000

$20,000

$25,000

$22,000

$27,000

$30,000

$24,000

The company has a policy of paying for 40% of the purchases in the month of purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.

Based on this information, what are the budgeted cash disbursements for May?

Question 2 - A company plans to purchase inventory for the second half of 2014 as follows:

July $100,000

August $75,000

September $225,000

October $125,000

November $250,000

December $30,000

They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.

Based on this information, what are the forecasted total 2014 cash payments for inventory purchased in the second half of 2014?

Reference no: EM132562030

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