Garden Company purchased $140,000 of goods in June and expects to purchase $130,000 of goods in July. Garden typically pays for 20% of purchases in the month of purchase and 80% in the following month.Every month, Garden must make the following payments:
In mid-July, Garden expects to buy a new computer for $4,500 using the company credit card. Typically, the credit card bill is paid in full in the following month. June credit card purchases totalled $6,000.
-Refer to the Figure.What is Garden's expected cash disbursement in July to pay for purchases of goods?
A) $26,000
B) $112,000
C) $130,000
D) $138,000
Correct Answer:
Verified
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