4.5 pts Question 26 Zach's Retail Store started operations on June 1. For purposes of budget preparation, assume the following: Expected sales for the first four months are: June $10,000 July $16,000 August..... $24,000 September... $25,000 The company's cost of goods sold is 60% of sales The company desires that the merchandise inventory on hand at the end of each month be equal to 50% of the next month's cost of goods sold. All purchases of merchandise inventory must be paid in the month of purcpase. 60% of all sales are for cash the balance is on credit. 75% of the credit sales are collected in the month following the month of sale, with the balance collected in the following month, Variable operating expenses are 10% of sales revenue, and fixed operating expenses all depreciation) are $3,000 per month. Cash payments for the variable operating expenses are made during the month the expenses are incurred The total cash disbursements for August would be 520.100 following . Expected sales for the first four months are: June............ $10,000 July ............. $16,000 August $24.000 September....... $25,000 The company's cost of goods sold is 60% of sales The company desires that the merchandise Inventory on hand at the end of each month be equal to 50% of the next month's cost of goods sold. All purchases of merchandise inventory must be paid in the month of purchase. 60% of all sales are for cash the balance is on credit. 75% of the credit sales are collected in the month following the month of sale, with the balance collected in the following month Variable operating expenses are 10% of sales revenue and fixed operating expenses (all depreciation) are $3.000 per month Cash payments for the variable operating expenses are made during the month the expenses are incurred The total cash disbursements for August would be: $20,100 $16.900 517.100 $11.00