Coronado Industries expects to purchase $220000 of materials in July and $250000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. What are budgeted cash disbursements for materials purchases in August? O $250000 O $187500 O $165000 O $242500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Coronado Industries expects to purchase $220000 of materials in July and $250000 of materials in August. Three-fourths of all
purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.
What are budgeted cash disbursements for materials purchases in August?
$250000
$187500
O $165000
O $242500
Transcribed Image Text:Coronado Industries expects to purchase $220000 of materials in July and $250000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. What are budgeted cash disbursements for materials purchases in August? $250000 $187500 O $165000 O $242500
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