Robertson & Jellicoe Limited purchases 90% of its goods on credit, paying cash for the remainder.On average, the company expects to pay for 90% of its credit purchases in the month immediately following purchase, with the remaining 10% paid for in the month after that. The company's purchases budget for the third quarter of the 20X5 financial year is as follows:
How much cash outlay will be budgeted in respect of purchases, both credit and cash, in September 20X5?

Question

Robertson & Jellicoe Limited purchases 90% of its goods on credit, paying cash for the remainder.On average, the company expects to pay for 90% of its credit purchases in the month immediately following purchase, with the remaining 10% paid for in the month after that. The company's purchases budget for the third quarter of the 20X5 financial year is as follows:
 How much cash outlay will be budgeted in respect of purchases, both credit and cash, in September 20X5?

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The Answer of Robertson & Jellicoe Limited purchases 90% of its goods on credit, paying cash for the remainder.On average, the company expects to pay for 90% of its credit purchases in the month immediately following purchase, with the remaining 10% paid for in the month after that. The company's purchases budget for the third quarter of the 20X5 financial year is as follows:
 How much cash outlay will be budgeted in respect of purchases, both credit and cash, in September 20X5?

Robertson & Jellicoe Limited Purchases 90% of Its Goods on Credit