Question

The Lawn Antique Mall expects to make purchases in the first quarter of 2018 as follows:...

The Lawn Antique Mall expects to make purchases in the first quarter of 2018 as follows:

January $87,700
February 99,000
March 82,000


Purchases in December 2017 are expected to be $91,000. The company expects that 55 percent of a month’s purchases will be paid in the month of purchase and 45 percent will be paid in the following month.

Estimate cash disbursements related to purchases for each month of the first quarter of 2018.

Cash disbursements for purchases January February March
Payment of December purchases $ $ $
Payment of January purchases
Payment of February purchases
Payment of March purchases
$ $ $

Homework Answers

Answer #1
Cash Payments Schedule
January February March Quarter
December Purchases $          40,950 $     40,950
January Purchases $          48,235 $           39,465 $     87,700
February Purchases $           54,450 $       44,550 $     99,000
March Purchases $       45,100 $     45,100
Total $          89,185 $          93,915 $      89,650 $ 2,72,750
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