Question

Purchases in May were $ 57 comma 000​, while expected purchases for June and July are $ 74 comma 000 and $ 89 comma 000​, respectively. All purchases are paid 40​% in the month of purchase and 60​% in the following month. At what amount are June payments for purchases​ budgeted?

Answer 1

$63,800

Step-by-step explanation:

May purchases $57,000

June $74,000

July $89,000

Payment schedule 40% for the current month and 60 % the following month

The budget for June will be

40 % of June purchases plus 60% of May purchases

=(40/100 x 74,000) +(60/100 x 57,000)

=(0.4 x 74,000) + 0.6 x 57,000)

=29,600 + 34,200

=$63,800