Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
How much cash should Acti expect to pay out for raw material purchases during November?

Question

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:  At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
How much cash should Acti expect to pay out for raw material purchases during November?

Quizplus · Accepted Answer

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Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases