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 total cash disbursements in October to account for the purchase of merchandise 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 total cash disbursements in October to account for the purchase of merchandise at Goliath Company?

Quizplus · Accepted Answer

A)
Aug.Purchases $39,600 × 25% = $9,900
Sept.45,800 × 45% = 20,610
Oct.49,400 × 30% = 14,820
Total $45,330

Goliath Company Prepared the Following Purchases Budget