Donald Company Has the Following Information: Purchases Are Paid

question 36

Multiple Choice

Donald Company has the following information: Purchases are paid as follows:
10% in the month of purchase
50% one month after purchase
40% two months after purchase
What is the estimated cash disbursement in March from January purchases?

• A)$3,052
• B)$12,000
• C)$12,208
• D)$13,400

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Definitions:

Flash Mob

A large group of people who assemble suddenly in a public place, perform an unusual act for a brief time, then quickly disperse, often organized via telecommunications or social media.

Conglomeration

The process or result of forming a large company or group of companies by merging multiple small ones, often across various industries.

Merger

The legal combination of two companies, usually in order to maximize efficiency and profits by eliminating redundant infrastructure and personnel.

Verizon

A multinational telecommunications company offering wireless products and services.