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Bramble, Inc. provided the following information: July August Projected sales $220,000 $278,000 Projected merchandise purchases $142,000 $174,000 Bramble estimates that it will collect 40% of
Bramble, Inc. provided the following information:
July | August | ||||
---|---|---|---|---|---|
Projected sales | $220,000 | $278,000 | |||
Projected merchandise purchases | $142,000 | $174,000 |
Bramble estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. | |
Bramble pays for 30% of merchandise purchases in the month purchased and 70% in the following month. | |
General operating expenses are budgeted to be $23,500 per month, including depreciation of $2,200. Bramble pays operating expenses in the month incurred. | |
Bramble makes loan payments of $5,000 per month of which $400 is interest and the remainder is principal. |
Calculate Bramble's budgeted cash disbursements for August.
Budgeted Cash Disbursements | $enter the budgeted cash disbursements for August in dollars |
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