Solace Garden Company purchased $140,000 of goods in June and expects to purchase $130,000 of goods in
Fantastic news! We've Found the answer you've been seeking!
Question:
Solace Garden Company purchased $140,000 of goods in June and expects to purchase $130,000 of goods in July. The company typically pays for 20 percent of purchases in the month of purchase and 80 percent in the following month.
Every month, the company must make the following payments:
Rent $ 5,000 Wages 14,000 Utilities 3,000 Telephone 400 Loan on equipment 1,200
In mid-July, the company expects to buy a new computer for $4,500 using the company credit card. Typically, the credit card bill is paid in full in the following month. June credit card purchases totaled $6,000.
Refer to Solace Garden Company. What is the expected cash disbursement in July to pay for purchases of goods?
a)26
b)112
c)130
d)138
Posted Date: