It is January 1 of Year 2. Purchases for Yosef Company for January, February, and March of Year 2 are forecasted to be as follows:

January, 200,000; February 400,000; March, 500,000

20% of purchases are for cash. Of the credit purchases, 30% are paid during the month of the purchase, 50% in the month following the purchase, and 20% in the second month following the purchase. Totalpurchases for November and December of Year 1 were 200,000 and 400,000, respectively.

What is the forecasted amount of total cash payments for purchasesin January of Year 2? (Note: This is the sum of immediate payments from cash purchases, same-month cash payments of credit purchases, and cash payments for credit purchases made in prior months.)

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Answer rating: 100% (QA)

To calculate the forecasted amount of total cash payments for purchases in January of Year 2 we need ... View the full answer