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

question 21

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 February?

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

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Definitions:

Internal Factors

Elements within an organization that can influence its performance, including its culture, policies, employee skills, and management capabilities.

External Factors

Elements outside of an organization that can affect its performance and strategies, such as market trends, regulations, and economic conditions.

Projection

A psychological defense mechanism where individuals attribute their own undesirable feelings, motives, or intentions to someone or something else.

Concepts Execution

The process of turning strategic concepts and plans into actionable tasks or operations within an organization.