Ch. 8 Expected Cash Disbursements Question Please solve and explain the following problem with formula typed out. Pastoria Enterprises has scheduled raw materials purchases of $100,000 in Janurary $130,000 in February and $150,000 in March.  The company pays for 75% of its purchases in the month of purchases and 25% in the month after purchase.  What is the expected cash disbursement for the month of February?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter15: Managing Short-term Assets
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Ch. 8 Expected Cash Disbursements Question

Please solve and explain the following problem with formula typed out.

Pastoria Enterprises has scheduled raw materials purchases of $100,000 in Janurary $130,000 in February and $150,000 in March.  The company pays for 75% of its purchases in the month of purchases and 25% in the month after purchase.  What is the expected cash disbursement for the month of February?

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