Questions: Use the following to answer questions 1 and 2: Athens Manufacturing Company has budgeted the following raw material purchases for the last four months of the year: September................ 850,000 October..................... 900,000 November................ 810,000 December.................. 780,000 At Athens, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase.
Transcript text: Use the following to answer questions 1 and 2:
Athens Manufacturing Company has budgeted the following raw material purchases for the last four months of the year:
\begin{tabular}{ll}
September................ & $\$ 850,000$ \\
October..................... & $\$ 900,000$ \\
November................ & $\$ 810,000$ \\
December.................. & $\$ 780,000$
\end{tabular}
At Athens, $25 \%$ of raw materials purchases are normally paid for in the month of purchase. The remaining $75 \%$ is paid for in the month following the purchase.
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