Sophia,Inc.is preparing its cash budget for the fourth quarter.The inventory manager advises that materials purchases will be $40,000 in October and will increase by 25% for each month thereafter due to the holiday season.Sophia's purchases in September were $32,000.Sophia pays for purchases 50% in the month after sale and 50% in the 2nd month after the sale.What are Sophia's budgeted cash payments for purchases in November?

Question

Quizplus · Accepted Answer

$40,000 x 50% + $32,000 x 50% = $36,000