Cash Disbursements Budget - Company A reports the following purchases and payments information: Dec. Jan. Feb....

Cash Disbursements Budget - Company A reports the following purchases and payments information:

	Dec.	Jan.	Feb.	Mar.	Apr.
Purchases . . .	$210,000	$150,000	$170,000	$180,000	$190,000

(a) Assume Company A makes cash payments of 40% of its purchases in the month of the purchase and pays the remaining 60% the following month. Compute the company's cash payments for each month from January through April. (Include formulas used to solve problem).

Cash Disbursements Budget - Company B reports the following purchases and payment information:

	Dec.	Jan.	Feb.	Mar.	Apr.
Purchases . . .	$350,000	$310,000	$330,000	$340,000	$300,000

(b) Assume Company B makes cash payments of 35% of its purchases in the month of the purchase and pays the remaining 65% the following month. Compute the company's cash payments for each month from January through April. (Include formulas used to solve problem).

Expert Solution

jeff jeffy answered 1 year ago

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