Hammond's Cookie Toppings Makes Payments on Its Inventory Purchases as Follows

question 174

Multiple Choice

Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 30% in the month of purchase, 65% in the following month, and 5% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $$16,000, $19,000 and $22,000, respectively. What is the budgeted amount of cash payments to account for inventory in August at Hammond's Cookie Toppings?

• A)$18,250
• B)$6550
• C)$2850
• D)$19,750

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Definitions:

Alcoholic Fermentation

A biological process by which sugars such as glucose, fructose, and sucrose are converted into cellular energy, producing ethanol and carbon dioxide as byproducts.

Lactate Fermentation

A biological process occurring without oxygen where glucose or similar six-carbon sugars are transformed into cellular energy and lactate as a metabolic byproduct.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide and water.

Mitochondrial Matrix

The innermost compartment of the mitochondrion and the site of the citric acid cycle, which produces energy for the cell.