NARRBEGIN: Cash disbursements
Bavarian Brew's schedule of projected cash disbursement
The company's purchases are 75% of its sales.Of those purchases 15% are paid in cash,50% are paid in the following month and the remainder in the month after that.The company's wages and salaries equal 15% of sales each month plus $50.Taxes of $125 are due in April.The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April.In addition,the company will pay a $175 dividend in February.
-What are the cash disbursements for February? Assume Bavarian Brew had sales of $490 in December.

Question

NARRBEGIN: Cash disbursements
Bavarian Brew's schedule of projected cash disbursement
  The company's purchases are 75% of its sales.Of those purchases 15% are paid in cash,50% are paid in the following month and the remainder in the month after that.The company's wages and salaries equal 15% of sales each month plus $50.Taxes of $125 are due in April.The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April.In addition,the company will pay a $175 dividend in February.
-What are the cash disbursements for February? Assume Bavarian Brew had sales of $490 in December.

Quizplus · Accepted Answer

The Answer is B

NARRBEGIN: Cash Disbursements Bavarian Brew's Schedule of Projected Cash Disbursement