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Exercise 10-14 Cash Disbursements for Purchases

Exercise 10-14 Cash Disbursements for Purchases
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Solution Guide / Answer Key:

ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 8: Budgets and Performance Evaluation

Chapter 10 Exercise 10-14 Cash Disbursements for Purchases [LO 2]. Mississippi Retailers expects to make inventory purchases in the next quarter as follows:

April $60,000
May 70,000
June 95,000

Prior experience has shown that 30 percent of a month’s purchases are paid in the month of purchase and 70 percent are paid in the month following purchase. March purchases were $55,000.

Required
Estimate cash disbursements related to purchases for April, May, and June.

 

FILE: MS WORD

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