Della Company prepared the following purchases budget:
$\begin{array}{|l|r|}
\hline\text { Month } & \text { Budgeted Purchases } \
\hline \text { June } & \$ 67,000 \
\hline \text { July } & \$ 72,500 \
\hline \text { August } & \$ 76,300 \
\hline \text { September } & \$ 73,700 \
\hline \text { October } & \$ 69,200\\hline
\end{array}$
All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase.
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What are the total cash payments made in August for purchases?

Question

Quizplus · Accepted Answer

To calculate the total cash payments made in August for purchases, we need to consider the payments for the purchases made in June, July, and August based on the payment structure. For June purchases of $67,000: 40% is paid in August, which is $26,800. For July purchases of $72,500: 50% is paid in August, which is $36,250. For August purchases of $76,300: 10% is paid in August, which is $7,630. Adding these amounts gives us $26,800 + $36,250 + $7,630 = $70,680.

Della Company Prepared the Following Purchases Budget All Purchases Are Paid for as Follows: 10% in the }