Garden Company Purchased $140,000 of Goods in June and Expects

question 158

Multiple Choice

Garden Company purchased $140,000 of goods in June and expects to purchase $130,000 of goods in July. Garden typically pays for 20% of purchases in the month of purchase and 80% in the following month.Every month, Garden must make the following payments:
In mid-July, Garden expects to buy a new computer for $4,500 using the company credit card. Typically, the credit card bill is paid in full in the following month. June credit card purchases totalled $6,000.
$\begin{array}{lr}\text { Rent } & \$ 5,000 \\\text { Wages } & \$ 14,000 \\\text { Utilities } & \$ 3,000 \\\text { Telephone } & \$ 400 \\\text { Loan on equipment } & \$ 1,200\end{array}$
-Refer to the Figure.What is Garden's expected cash disbursement in July to pay for purchases of goods?

• A)$26,000
• B)$112,000
• C)$130,000
• D)$138,000

---

Definitions:

Red Cross

An international humanitarian organization tasked with protecting human life and health, ensuring respect for all, and preventing human suffering.

Northeastern Cities

Urban areas located in the northeastern region of the United States, characterized by their historical significance and economic development.

Desegregated Units

Military or organizational units where members of different racial backgrounds are integrated, as opposed to segregated units.

Zoot Suit Riots

1943 riots in which sailors on leave attacked Mexican-American youths.