Streak Merchandising Company Expects to Purchase $60,000 of Materials in July

Multiple Choice

Streak Merchandising Company expects to purchase $60,000 of materials in July and $70,000 of materials in August.Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.In addition, a 2% discount is received for payments made in the month of purchase.How much will cash disbursements for materials purchases be in August?

A) $44,100
B) $54,100
C) $66,450
D) $60,000