[The following information applies to the questions displayed below.]
The following information is from the manufacturing budget and budgeted financial statements of Altman Corp.:

-For the year,budgeted cash payments to suppliers amounted to:
A)$344,000.
B)$350,000.
C)$334,000.
D)$354,000.

Question

[The following information applies to the questions displayed below.]
The following information is from the manufacturing budget and budgeted financial statements of Altman Corp.:
 
-For the year,budgeted cash payments to suppliers amounted to:
A)$344,000. 
B)$350,000. 
C)$334,000. 
D)$354,000.

Quizplus · Accepted Answer

According to the manufacturing budget, the budgeted purchases of materials are $355,000. Since 98% of these purchases are expected to be paid for in cash, the budgeted cash payments to suppliers would be 98% of $355,000, which is $347,900, rounded to $350,000. Therefore, the best choice is B.

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