Lambert Company purchased $140,000 of goods in September and expects to purchase $130,000 of goods in October.Lambert typically pays for 20% of purchases in the month of purchase and 80% in the following month. Every month, Lambert must make the following payments:
In mid-October, Lambert expects to buy a new computer for $4,500 using the company credit card.Typically, the credit card bill is paid in full in the following month.September credit card purchases totaled $6,000.
-What is Lambert's expected cash disbursement in October for purchases of goods?
A) $140,000
B) $130,000
C) $112,000
D) $138,000
E) $26,000
Correct Answer:
Verified
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