Cat Co. forecasts merchandise purchases of $11,600 in January, $11,800 in February, and $15,400 in March; 40% of purchases are paid in the month of purchase and 60% are paid in the following month. At December 31 of the prior year, the balance of Accounts Payable (for December purchases) is $8,000. What is the cash disbursements for merchandise for the month of February

The cash disbursements for merchandise in February is $11680

Explanation:

The cash disbursements for merchandise in February will include the payment for 60% of merchandise purchases for January and 40% of merchandise purchases for February.

The amount of January purchases to be paid in February = 0.6 * 11600 = 6960

The amount of February purchases to be paid in February = 0.4 * 11800 = 4720

The total amount of cash disbursements in February fro merchandise is,

6960 + 4720  =  $11680

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this