Georgia Company has the following information: $$\begin{array} { l l }
\text { Month } & \text { Budgeted Purchases } \
\text { January } & \$ 25,000 \
\text { February } & 19,000 \
\text { March } & 33,000 \
\text { April } & 27,000 \
\text { May } & 27,680
\end{array}$$ Purchases are paid for in the following manner: 75% in the month of purchase 25% in the month after purchase
Is the total estimated cash disbursement in March for the purchase of merchandise.

Question

Georgia Company has the following information: $$\begin{array} { l l } 
\text { Month } & \text { Budgeted Purchases } \
\text { January } & \$ 25,000 \
\text { February } & 19,000 \
\text { March } & 33,000 \
\text { April } & 27,000 \
\text { May } & 27,680
\end{array}$$ Purchases are paid for in the following manner: 75% in the month of purchase 25% in the month after purchase
Is the total estimated cash disbursement in March for the purchase of merchandise.

Quizplus · Accepted Answer

In March, 75% of March purchases ($33,000) are paid, which is $24,750. Additionally, 25% of February purchases ($19,000) are paid, which is $4,750. Total = $24,750 + $4,750 = $29,500.

Georgia Company Has the Following Information Purchases Are Paid for in the Following Manner: 75% in }