Garnett co. expects to purchase $180,000 of materials in july and $210,000 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. how much will august's cash disbursements for materials purchases be?

Total= $202,500

Explanation:

Giving the following information:

Garnett Co. expects to purchase $180,000 of materials in July and $210,000 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.

To calculate the August cash disbursement, we need to use the following formula:

Cash= total August cash required + cash from July

Cash for August:

August= 210,000*0.75= 157,500

From July= 180,000*0.25= 45,000

Total= $202,500

definitely a

answerthe above statement is (true);