The Warrenburg Antique Mall expects to make purchases in the first quarter of 20

Question

The Warrenburg Antique Mall expects to make purchases in the first quarter of 2015 as follows: January $106,000 February 120,000 March 99,000 Purchases in December 2014 are expected to be $110,000. The company expects that 55 percent of a month's purchases will be paid in the month of purchase and 45 percent will be paid in the following month. Estimate cash disbursements related to purchases for each month of the first quarter of 2015. Payment of December purchases Payment of January purchases Payment of February purchases Payment of March purchases

Explanation / Answer

Statement showing disbursement of cash for purchases

Cash disbursement for purchases Total purchases January February March Payment for december purchases $110000 $49500 Payment for january purchases $106000 $58300 $47700 Payment for february purchases $120000 $66000 $54000 Pyment for march purchases $99000 $54450 Total $107800 $113700 $108450

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