Problemgreen earths monthly purchases are equal to 70, Ask an Expert

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Problem:

Green Earth's monthly purchases are equal to 70 percent of the following month's sales. The accounts payable period for purchases is 30 days. All other expenses are paid when incurred. Assume each month has 30 days and August sales are $18,500. The company has compiled the following information.

May - Sales14800, other expenses 2800, interest and taxes 650
June - Sales 16100, other expenses 3000, interest and taxes 720
July - Sales 17500, other expenses 3300, interest and taxes 880

Required:

Question: What is the projected amount of disbursements for the month of july?

Note: Explain all steps comprehensively.

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Category:- Basic Finance
Reference No.:- M91149329

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