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Business, 23.04.2020 19:05 kennyg02

Kohlman Company began its operations on March 31 of the current year. Projected purchases for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Admin expenses represent $28,800 of the estimated monthly payments. Seventy-five percent (75%) of the purchases are expected to be paid in the month in which they are purchased. Twenty percent (20%) will be paid in the following month. Five percent (5%) is expected to be uncollectable. The cash payments for the month of April and May are:

a. $185,600 and 224,000
b. $117,600 and 146,600
c. $146,400 and 206,560.
d. $156,800 and 195,000

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