The Projections of Direct Materials Purchases That Follow Are for the Sombo

question 12

Multiple Choice

The projections of direct materials purchases that follow are for the Sombo Corporation. The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase.
-What is the expected cash payment for direct materials for the month of February of Sombo?

• A)$52,000
• B)$72,000
• C)$89,000
• D)$95,000

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Definitions:

Prostaglandins

A group of physiologically active lipid compounds that have diverse hormone-like effects in animals, playing roles in inflammation, pain, and other bodily functions.

Ibuprofen

A nonsteroidal anti-inflammatory drug (NSAID) commonly used to reduce fever, pain, and inflammation.

Opiate Receptors

Proteins located in the brain, spinal cord, and gastrointestinal tract that bind opiates or opioid substances, affecting pain and pleasure responses.

Therapeutic

Relating to the healing of disease, often used to describe treatments that are beneficial in recovering from illnesses.