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Given the following information, calculate cash disbursements for February: January purchases = $200,000February purchases = $300,000March purchases = $350,000 Assumptions for the budget:• 55 percent is paid in the month of purchase• 43 percent is paid in the month following the purchase• 2 percent taken as a cash discount for early paymentMultiple choice question.$315,070$245,980$239,000$251,000

Question

Given the following information, calculate cash disbursements for February: January purchases = 200,000Februarypurchases=200,000February purchases = 300,000March purchases = 350,000 Assumptionsforthebudget:•55percentispaidinthemonthofpurchase•43percentispaidinthemonthfollowingthepurchase•2percenttakenasacashdiscountforearlypaymentMultiplechoicequestion.350,000 Assumptions for the budget:• 55 percent is paid in the month of purchase• 43 percent is paid in the month following the purchase• 2 percent taken as a cash discount for early paymentMultiple choice question.315,070245,980245,980239,000$251,000

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Solution

To calculate cash disbursements for February, we need to consider both the payments for purchases made in February and the payments for purchases made in January.

  1. First, calculate the amount paid in February for February purchases. This is 55% of February purchases:

    300,000∗0.55=300,000 * 0.55 = 165,000

  2. Next, calculate the amount paid in February for January purchases. This is 43% of January purchases:

    200,000∗0.43=200,000 * 0.43 = 86,000

  3. Add these two amounts together to get the total cash disbursements for February:

    165,000+165,000 + 86,000 = $251,000

So, the correct answer is $251,000.

This problem has been solved

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Cash budget

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