Goliath Company prepared the following purchases budget: Month Budgeted Purchases June $ 35 comma 100 July $ 41 comma 500 August $ 39 comma 000 September $ 45 comma 800 October $ 48 comma 200 All purchases are paid for as follows: 35 % in the month of purchase, 45 % in the following month, and 20 % two months after purchase. What are the total cash disbursements in October to account for the purchase of merchandise at Goliath Company?

Question

Business

Jaylen Hancock

15 November, 07:55

Goliath Company prepared the following purchases budget: Month Budgeted Purchases June $ 35 comma 100 July $ 41 comma 500 August $ 39 comma 000 September $ 45 comma 800 October $ 48 comma 200 All purchases are paid for as follows: 35 % in the month of purchase, 45 % in the following month, and 20 % two months after purchase. What are the total cash disbursements in October to account for the purchase of merchandise at Goliath Company?

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Katelynn Powell · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

Month Budgeted Purchases

June: $35,100

July: $ 41,500

August: $39,000

September: $45,800

October: $48,200

All purchases are paid for as follows: 35 % in the month of purchase, 45 % in the following month, and 20 % two months after purchase.

October:

Purchase October = 48,200*0.35 = 16,870

From September = 45,800*0.45 = 20,610

From August = 39,000*0.20 = 7,800

Total = $45,280