Peach Company has the following information: $\begin{array}{lc}
\text { Month } & \text { Budgeted Purchases } \
\hline \text { January } & \$ 25,000 \
\text { February } & 19,000 \
\text { March } & 33,000 \
\text { April } & 27,000 \
\text { May } & 27,680
\end{array}$ Purchases are paid for in the following manner: 75% in the month of purchase
25% in the month after purchase
_____ is the total estimated cash disbursement in March for the purchase of merchandise.
A)$22,500
B)$24,750
C)$29,500
D)$39,000

Question

Quizplus · Accepted Answer

In March, Peach Company will pay 75% of March purchases and 25% of February purchases. March purchases are $33,000, so 75% of that is $24,750. February purchases are $19,000, so 25% of that is $4,750. Adding these together gives $24,750 + $4,750 = $29,500.

Peach Company Has the Following Information Purchases Are Paid for in the Following Manner: 75% in