Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 30% in the month of purchase, 65% in the foll

Question

2 years ago

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Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 30% in the month of purchase, 65% in the foll

owing month, and 5% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $16,000, $19,000 and $22,000, respectively. What is the budgeted amount of cash payments to account for inventory in August at Hammond's Cookie Toppings?

Business

1 answer:

zalisa [80] · Answer 1 · 2023-09-20T15:17:55+03:00

Answer:

Total Cash= $19,750

Explanation:

Giving the following information:

Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 30% in the month of purchase, 65% in the following month, and 5% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $16,000, $19,000 and $22,000, respectively.

Cash for August:

Purchase for August= 0.30*22,000= 6,600

From July= 0.65*19,000= 12,350

From June= 0.05*16,000= 800

Total= $19,750

​Hammond's Cookie Toppings makes payments on its inventory purchases as​ follows: 30% in the month of​ purchase, 65% in the foll

Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 30% in the month of purchase, 65% in the foll