Sawbridge Farnsworth Limited purchases all its goods on credit.70% are paid for in the month following purchase, with the remaining 30% paid in the next following month.(So, for example, 70% of January purchases will be paid for in February, and 30% of January purchases will be paid for in March). Purchases of goods are budgeted as follows for the second quarter of 20X6:
How much cash outlay will be budgeted in respect of credit purchases for the month of June 20X6?

Question

Sawbridge Farnsworth Limited purchases all its goods on credit.70% are paid for in the month following purchase, with the remaining 30% paid in the next following month.(So, for example, 70% of January purchases will be paid for in February, and 30% of January purchases will be paid for in March). Purchases of goods are budgeted as follows for the second quarter of 20X6:
 How much cash outlay will be budgeted in respect of credit purchases for the month of June 20X6?

Quizplus · Accepted Answer

The Answer of Sawbridge Farnsworth Limited purchases all its goods on credit.70% are paid for in the month following purchase, with the remaining 30% paid in the next following month.(So, for example, 70% of January purchases will be paid for in February, and 30% of January purchases will be paid for in March). Purchases of goods are budgeted as follows for the second quarter of 20X6:
 How much cash outlay will be budgeted in respect of credit purchases for the month of June 20X6?

Sawbridge Farnsworth Limited Purchases All Its Goods on Credit