Goliath Company prepared the following purchases budget:

All purchases are paid for as follows: 30% in the month of purchase,45% in the following month,and 25% two months after purchase.
What are the cash disbursements in August to account for the June purchases at Goliath Company?

Question

Goliath Company prepared the following purchases budget:

All purchases are paid for as follows: 30% in the month of purchase,45% in the following month,and 25% two months after purchase.
What are the cash disbursements in August to account for the June purchases at Goliath Company?

Quizplus · Accepted Answer

D)$35,600 × 25% = $8,900

Goliath Company Prepared the Following Purchases Budget