Holmes Manufacturing Inc Holmes Pays One-Half of a Month's Purchases in the Month

question 103

Multiple Choice

Holmes Manufacturing Inc.had the following purchases budgeted for the last six months of 2009:
$\begin{array}{lr}\text { July } & \$ 60000 \\\text { August } & 45000 \\\text { September } & 52000 \\\text { October } & 60000 \\\text { November } & 80000 \\\text { December } & 85000\end{array}$
Holmes pays one-half of a month's purchases in the month of purchase and the remainder in the following month.What are expected total cash disbursements for the last quarter of 2009?

• A) $112 500
• B) $225 000
• C) $182 500
• D) $208 500

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Definitions:

Malkiel's Study

An academic research work that analyzes market trends, investor behavior, and the efficiency of financial markets, particularly known for supporting the random walk hypothesis.

Subsequent-year Period

A timeframe that follows the current year, used in forecasting and planning for future financial or operational activity.

Investment Company Assets

Assets held by a company that pools together money from many investors to purchase securities such as stocks, bonds, and other financial assets.

Mutual Funds

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.