Summertime Adventures is a seasonal firm that enjoys its highest sales during July and August. The company purchases inventory one month before it is sold and pays for its purchases 60 days after the invoice date. Which one of the following statements is supported by this information?
A) Inventory purchases will be highest during the months of July and August.
B) Inventory purchases will be highest during the months of May and June.
C) Payments to suppliers will be highest during the months of June and July.
D) Payments to suppliers will be highest during the months of July and August.
E) Payments to suppliers will be highest during the months of August and September.

Question

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The Answer of Summertime Adventures is a seasonal firm that enjoys its highest sales during July and August. The company purchases inventory one month before it is sold and pays for its purchases 60 days after the invoice date. Which one of the following statements is supported by this information?
A) Inventory purchases will be highest during the months of July and August.
B) Inventory purchases will be highest during the months of May and June.
C) Payments to suppliers will be highest during the months of June and July.
D) Payments to suppliers will be highest during the months of July and August.
E) Payments to suppliers will be highest during the months of August and September.

Summertime Adventures Is a Seasonal Firm That Enjoys Its Highest