A company budgeted the following purchases for raw materials: 

Month      January       February        March       April           May      June        July 

Budget   $10,000       $20,000        $25,000  $22,000   $27,000   $30,000  $24,000

 

The company has a policy of paying for 40% of the purchases in the month of purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.

Based on this information, what are the budgeted cash disbursements for May?

Answer rating: 100% (QA)

Disbursements from Mays purchases 40 of 27000 Mays budget 10800 Disbursements ... View the full answer