Asked by Aleyna Akgun on May 06, 2024
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Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the total budgeted cash disbursements for raw materials purchases is closest to:
A) $265,150
B) $153,930
C) $166,830
D) $111,220
Raw Materials Purchases
Expenditures for the acquisition of materials that are directly used in the production of goods or services.
Budgeted Cost
The estimated financial cost anticipated for a specific period, project, or operation, often used in planning and decision-making.
Cash Disbursements
Money paid out by a business during a period, including expenses, dividend payments, and investments.
- Develop skills in preparing a cash budget and managing cash flow, including estimating cash receipts and disbursements.
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Learning Objectives
- Develop skills in preparing a cash budget and managing cash flow, including estimating cash receipts and disbursements.
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