Answer:
Results are below.
Explanation:
Giving the following information:
Purchases:
April= $120,000
May= $140,000
June= $160,000
The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase.
We can calculate the cash disbursement for each month:
April:
Purchase from April= 120,000*0.75= 90,000
May:
Purchase from May= 140,000*0.75= 105,000
Purchase from April= 120,000*0.25= 30,000
Total= 135,000
June:
Purchase from May= 140,000*0.25= 35,000
Purchase from June= 160,000*0.75= 120,000
Total= 155,000
