Rival Company purchases merchandise on account.In general,Rival pays 50% in the month of purchase and 50% in the following month.All payments in the month of purchase qualify for a 2% cash discount.First quarter budgeted purchases are: $\begin{array}{lr}
\text { January } & \$ 90,000 \
\text { February } & 80,000 \
\text { March } & 96,000
\end{array}$ A. What are the total cash disbursements expected in February?
B. What are the total cash disbursements expected in March?
C. Suppose that there is NO cash discount for purchases made in the month of purchase.
Now what are the total cash disbursements expected in February? In March?

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The Answer of Rival Company purchases merchandise on account.In general,Rival pays 50% in the month of purchase and 50% in the following month.All payments in the month of purchase qualify for a 2% cash discount.First quarter budgeted purchases are: $\begin{array}{lr}
\text { January } & \$ 90,000 \
\text { February } & 80,000 \
\text { March } & 96,000
\end{array}$ A. What are the total cash disbursements expected in February?
B. What are the total cash disbursements expected in March?
C. Suppose that there is NO cash discount for purchases made in the month of purchase.
Now what are the total cash disbursements expected in February? In March?

Rival Company Purchases Merchandise on Account January $90,000 February 80,000 March 96,000\begin{array}{lr}\text { January } & \$ 90,000 \\\text { February } & 80,000 \\\text { March } & 96,000\end{array} January February March ​$90,00080,00096,000​

Rival Company Purchases Merchandise on Account $\begin{array}{lr}\text { January } & \$ 90,000 \\\text { February } & 80,000 \\\text { March } & 96,000\end{array}$