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A company has budgeted direct materials purchases of $400,000 in March and $350,000 in April. Past experience indicates that the company pays for 60% of
A company has budgeted direct materials purchases of $400,000 in March and $350,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. During April, the following items were budgeted:
Wages Expense $200,000
Purchase of office equipment 40,000
Selling and Administrative Expenses 35,000
Depreciation Expense 20,000
The budgeted cash disbursements for April are $___________ . Please show all calculations.
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