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4 September, 20:26

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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  1. 4 September, 20:52
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    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
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