Franklin Incorporated is working on its Materials Cash Disbursements Budget and is trying to determine how much cash it will spend on materials in the next year. According to their budget standards, they pay for 60% of their materials purchased in the quarter materials are received and 40% in the following quarter. They anticipate Accounts Payable for Materials (prior year) of $50,000, Material Purchases in Q1 of $100,000, Material Purchases in Q2 of $200,000, Material Purchases in Q3 of $300,000 and Material Purchases in Q4 of $250,000. What will their Total Cash Disbursements for Materials be for next year?

Answer rating: 100% (QA)

To calculate the Total Cash Disbursements for Materials for Franklin Incorporated next year we need ... View the full answer