Crossley, Inc. has the following information:
Purchases are paid for in the following manner:
10 percent in the month of purchase
50 percent in the month after purchase
40 percent two months after purchase
-The total cash disbursements in March for the purchase of merchandise should be

Question

Crossley, Inc. has the following information:
  Purchases are paid for in the following manner:
10 percent in the month of purchase
50 percent in the month after purchase
40 percent two months after purchase
-The total cash disbursements in March for the purchase of merchandise should be

Quizplus · Accepted Answer

To calculate the total cash disbursements in March, we need to find out the purchases made in January and February, as Crossley, Inc. pays 50% and 40% respectively in those two months after the purchase.

Let's assume the total purchases made by Crossley, Inc. in a month is $x. Then, the cash disbursements for that month would be:

- 10% of x in the same month
- 50% of x in the next month
- 40% of x in the second month after the purchase

So, the total cash disbursements for a purchase of $x would be:

0.1x + 0.5x + 0.4x = x

Now, let's look at the purchases made in January and February separately:

- Purchases made in January:
Total purchases = TB5266_00_TB5266_00_TB5266_00_TB5266_00
Cash disbursements in January = 0.1(TB5266_00_TB5266_00_TB5266_00_TB5266_00) = TB5266_00_TB5266_00_TB5266_00_TB5266_00/10

Cash disbursements in February = 0.5(TB5266_00_TB5266_00_TB5266_00_TB5266_00/10) + 0.4(TB5266_00_TB5266_00_TB5266_00_TB5266_00/10) = TB5266_00_TB5266_00_TB5266_00_TB5266_00/10

- Purchases made in February:
Total purchases = 0 (because there is no information on purchases made in March)
Cash disbursements in February = 0

Cash disbursements in March would be the sum of cash disbursements for January and February:

Cash disbursements = TB5266_00_TB5266_00_TB5266_00_TB5266_00/10 + TB5266_00_TB5266_00_TB5266_00_TB5266_00/10 = TB5266_00_TB5266_00_TB5266_00_TB5266_00/5

Therefore, the answer is C) $141,360.

Crossley, Inc. Has the Following Information