Holmes Manufacturing Inc.had the following purchases budgeted for the last six months of 2009:
$\begin{array}{lr}
\text { July } & \$ 60000 \
\text { August } & 45000 \
\text { September } & 52000 \
\text { October } & 60000 \
\text { November } & 80000 \
\text { December } & 85000
\end{array}$
Holmes pays one-half of a month's purchases in the month of purchase and the remainder in the following month.What are expected total cash disbursements for the last quarter of 2009?
A) $112 500
B) $225 000
C) $182 500
D) $208 500

Question

Quizplus · Accepted Answer

The total cash disbursements for the last quarter (October, November, December) include half of October's purchases ($30,000), all of November's purchases ($80,000), and half of December's purchases ($42,500), plus the remaining half of September's purchases ($26,000), totaling $208,500.

Holmes Manufacturing Inc Holmes Pays One-Half of a Month's Purchases in the Month