Question: Alabama Corporation purchases raw materials on account from vari

Alabama Corporation purchases raw materials on account from various suppliers. It normally pays for 70 percent of these in the month purchased, 20 percent in the first month after purchase, and the remaining 10 percent in the second month after purchase. Raw materials purchases during the last five months of the year are expected to be
August.................................................................................................. $1,000,000
September ................................................................................................ 900,000
October ..................................................................................................1,250,000
November ...............................................................................................1,750,000
December.................................................................................................. 950,000

Compute the expected amount of cash payments to suppliers for the months of October, November, and December.


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  • CreatedJune 04, 2012
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