Hammond's Cookie Toppings Makes Payments on Its Inventory Purchases as Follows

Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 25% in the month of purchase, 65% in the following month, and 10% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $15,000, $19,000 and $24,000, respectively. At what amount are cash payments for inventory in August budgeted?

A) $18,500
B) $7,850
C) $5,800
D) $19,850

Correct Answer:

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