Question

Dalton Industries makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 30% Paid in the first month following purchase: 60% Paid in the second month following purchase: 10% If purchases for January, February, and March were $200,000, $180,000, and $230,000, respectively, what were the firm's budgeted payments in March

Answer 1

$197,000

Step-by-step explanation:

Calculation for what were the firm's budgeted payments in March

Month Purchase Payment in month

January 200,000* 10% =20,000

February 180,000* 60%= 108,000

March 230,000 *30%= 69,000

Firm's budgeted payments in March $197,000

(20,000+108,000+69,000)

Therefore the firm's budgeted payments in March is $197,000