Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 43

Resco, a local retail establishment, expects to make inventory purchases as follows for the first quarter of 2013: January, $5,500; February, $6,500; and March, $8,000. Prior experience shows that 25% of a given month's purchases are paid in the month of purchase with the balance paid in the following month. No purchase discounts apply. What is the total expected cash disbursement for February For March