Fort Dodge Corporation has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Purchases } \
\hline \text { August } & \$ 35,000 \
\text { September } & 38,000 \
\text { October } & 47,000 \
\text { November } & 36,500 \
\text { December } & 46,000
\end{array}$ Purchases are paid for in the following manner: 40% in the month of purchase
50% in the month after purchase
10% two months after purchase
_____ is the estimated cash disbursement in December from October purchases.
A)$21,750
B)$17,400
C)$4,700
D)$18,400

Question

Quizplus · Accepted Answer

In December, the company will pay the remaining 10% of its October purchases. October purchases are $47,000, so 10% of $47,000 is $4,700.

Fort Dodge Corporation Has the Following Information Purchases Are Paid for in the Following Manner: 40% in }