Villa Company has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Purchases } \
\hline \text { January } & \$ 56,800 \
\text { February } & 49,000 \
\text { March } & 30,520 \
\text { April } & 35,480 \
\text { May } & 27,680
\end{array}$ Purchases are paid for in the following manner: 10% in the month of purchase
50% in the month after purchase
40% two months after purchase
_____ is the estimated cash disbursement in May from April purchases.
A)$11,792
B)$17,740
C)$11,072
D)$13,840

Question

Quizplus · Accepted Answer

For April purchases of $35,480, 50% is paid in May, which equals $35,480 * 50% = $17,740.

Villa Company Has the Following Information Purchases Are Paid for in the Following Manner: 10% in