Dubuque Corporation has the following information: $\begin{array}{ll}
\text { Month } & \text { Budgeted Purchases } \
\text { August } & \$ 35,000 \
\text { September } & 38,000 \
\text { October } & 43,500 \
\text { November } & 36,500 \
\text { December } & 46,000
\end{array}$ 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.

Question

Quizplus · Accepted Answer

10% of October purchases, which is $43,500, will be paid in December. Therefore, $43,500 * 10% = $4,350.

Dubuque Corporation Has the Following Information Purchases Are Paid for in the Following Manner: 40% in