Milstrap Corporation manufactures product X and the following information applies:

Production (Units):      January (75000),       February (100,000),       March (120,000)

Each Unit has a cost of $9.00

December 31, Accounts Payable Balance is $600,000

They pay their vendors with the following pattern:

25% in the month of purchase

75% in the following purchase

What are the cash disbursements for January, February and March? Show each month separately.

Answer rating: 100% (QA)

To calculate the cash disbursements for each month we need to consider the payment pattern provided ... View the full answer