Question

Lakemerced Corp. budgeted purchases on account to be $317,000 in March, $374,000 in April, $429,000 in May, and $499,000 in June. Seventy percent of purchases are paid in cash in the month of purchase, the remaining 30% are paid in the following month. What are budgeted cash payments for April

Answer 1

Answer:

$173,640

Explanation:

April payments = $374,000 x 70 % + $317,000 x 30 %

                          = $173,640

Budgeted cash payments for April is $173,640