The Cookie Shops' purchases are equal to 70 percent of the following month's sales.The accounts payable period for purchases is 30 days while all other expenditures are paid in the month they are incurred.Assume each month has 30 days.The company has compiled the following information. What is the total amount of the firm's disbursements for the month of May?

Question

The Cookie Shops' purchases are equal to 70 percent of the following month's sales.The accounts payable period for purchases is 30 days while all other expenditures are paid in the month they are incurred.Assume each month has 30 days.The company has compiled the following information.  What is the total amount of the firm's disbursements for the month of May?

Quizplus · Accepted Answer

May disbursements = (0.70 × $7,100) + $1,550 + $360 = $6,880

The Cookie Shops' Purchases Are Equal to 70 Percent of the Following