Peach Company Has the Following Information Purchases Are Paid for in the Following Manner: 75% in

question 81

Multiple Choice

Peach Company has the following information: $\begin{array}{lc}\text { Month } & \text { Budgeted Purchases } \\\hline \text { January } & \$ 25,000 \\\text { February } & 19,000 \\\text { March } & 33,000 \\\text { April } & 27,000 \\\text { May } & 27,680\end{array}$ Purchases are paid for in the following manner: 75% in the month of purchase
25% in the month after purchase
_____ is the total estimated cash disbursement in March for the purchase of merchandise.

• A)$22,500
• B)$24,750
• C)$29,500
• D)$39,000

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Definitions:

1970s

The decade extending from January 1, 1970, to December 31, 1979, noted for significant political, social, and economic events worldwide.

Open-market Operations

Central bank activities involving the buying and selling of government securities in the open market to control the money supply and interest rates.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to fund federal government spending.

Federal Open Market Committee

The branch of the Federal Reserve System responsible for setting monetary policy, including the manipulation of interest rates and the money supply.