Answer:
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
