.
0/1pt
Question
78
pis
Cumberiand
Medical
Supplies
sells
incontinence
products
for
$10,
and
the
purchase
cost
is
$6
per
package.
The
firm
keeps
an
inventory
of
40%
of
next
month's
forecast
sales.
Each
month,
it
pays
suppliers
70%
of
the
current
month's
purchases,
and
the
remainder
is
paid
in
the
following
month.
The
first
5
months'
sales
budget
is
as
follows.
January
February
March
April
May
Sales
$6,000
54,000
S$3,000
56,000
$1,000
What
are
Cumberland's
cash
payments
to
suppliers
in
total
from
February
through
April?
70
NN
»/8,000
The
answer
can
be
determined
from
Section
10.6
under
the
heading
"Preparing
and
Formatting
Budget
Schedules."
