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

question 70

Multiple Choice

The projections of direct materials purchases that follow are for the Sombo Corporation. $\begin{array}{lll}&\text { Purclases on Account}&\text { Cash Purchases }\\\text { December } & \$ 40,000 & \$ 30,000 \\\text { January } & 60,000 & 33,000 \\\text { February } & 50,000 & 35,000 \\\text { March } & 70,000 & 25,000\end{array}$
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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 January?

• A) $33,000
• B) $85,000
• C) $102,000
• D) $108,000

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Definitions:

Local Market Knowledge

Understanding of the specific dynamics, consumer behaviors, and competitive landscape in a particular geographic area.

Cultural Differences

Refers to the varying beliefs, values, behaviors, and practices observed among people from different backgrounds.

Cognitive Restructuring

A technique used by cognitive-behavioral therapists to encourage clients to become aware of, and to question, their assumptions, expectations, attributions, and automatic thoughts.

Distorted Thoughts

Thought patterns that are twisted, misleading, or based on false assumptions.