Reed Merchandising Company expects to purchase $90,000 of materials in July and

Question

Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
Question 33 options: $67500 $78750 $101250 $105000 Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for the month following the month of purchase. How much will August's cash disbursements for material purchases be?
$67500 $78750 $101250 $105000 $67500 $78750 $101250 $105000 $67500 $78750 $101250 $105000

Explanation / Answer

.$105,000 X .75 = $78,750 from August purchases
$90,000 X .25 = $22,500 from July purchases


Total: $101,250

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