US CMA Part 1 · Chapter 2 · Question 16 of 30
A retailer pays for 40% of its merchandise purchases in the month of purchase and the remaining 60% in the following month. Purchases are $120,000 in February and $150,000 in March. What are budgeted cash payments for purchases in March?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) $132,000
Explanation
March payments = 40% x $150,000 (March purchases) + 60% x $120,000 (February purchases) = $60,000 + $72,000 = $132,000.
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