pter $13$ Planning and Budgeting $($i$)$

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Exercise $13-37($Algo$)$ Estimate Purchases and Cash Disbursements $($LO $13-3,4)$

Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is critical

ts and the supply chain often breaks. For that reason, Montrose has a policy to hold in inventory enough of the component to produce three month's worth of sales $($one component is used in each unit of product in which it is used$).$ On February $1,$ the company has $47,000$ components in stock. Sales of the units in which the component is used in each of the next six months are estimated to be as

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$\backslash$table$[[$February$,36,500],[$March$,30,500],[$April$,32,000],[$May$,37,550],[$June$,34,150],[$July$,46,110]]$

Parts are purchased at a wholesale price of $$62.$ The vendor has a financing arrangement by which Montrose pays $40$ percent of the purchase price in the month when the components are delivered and $60$ percent in the following month. Montrose purchased $46,000$ parts in January.

Required:

a$.$ Estimate purchases of the component $($in units$)$ for February and March.

b$.$ Estimate the cash disbursements for the component in February and March.

Mc

Graw

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$6$ of $25$

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Parts are purchased at a wholesale price of $$62.$ The vendor has a financing arrangement by which Montrose pays $40$ percent of the purchase price in the month when the components are delivered and $60$ percent in the following month. Montrose purchased $46,00$ parts in January.

Required:

a$.$ Estimate purchases of the component $($in units$)$ for February and March.

b$.$ Estimate the cash disbursements for the component in February and March.

Complete this question by entering your answers in the tabs below.

$$

Estimate purchases of the component $($in units$)$ for February and March.

$\backslash$table$[[,$February,March$],[$Merchandise to be purchased in units,,$]]$

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$6$ of

$25$

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Parts are purchased at a wholesale price of $$62.$ The vendor has a financing arrangement by which Montrose pays $40$ percent of th purchase price in the month when the components are delivered and $60$ percent in the following month. Montrose purchased $46,0($ parts in January.

Required:

a$.$ Estimate purchases of the component $($in units$)$ for February and March.

b$.$ Estimate the cash disbursements for the component in February and March.

Complete this question by entering your answers in the tabs below.

Required $A$

Requireci $B$

Estimate the cash disbursements for the component in February and March.

$\backslash$table$[[$Month of Payment,Total$],[$February$,],[$March$,]]$

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of $25$

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