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Bridgeport State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the information below for the months of January,

Bridgeport State sells electronic products. The controller is responsible for preparing the
master budget and has accumulated the information below for the months of January,
February, and March.
Balances at January 1 are expected to be as follows:
Cash $6,770 Inventories $380,600
Accounts receivable 511,800 Accounts payable 163,700
The budget is to be based on the following assumptions:
1. Each months sales are billed on the last day of the month.
2. Customers are allowed a 3% discount if their payment is made within 10 days after
the billing date. Receivables are booked at gross.
3. The company collects 60% of the billings within the discount period, 25% by the end
of the month after the date of sale, and 9% by the end of the second month after the
date of sale; 6% prove uncollectible.
4. It pays 54% of all materials purchases and the selling, general, and administrative
expenses in the month purchased and the remainder in the following month. Each
months units of ending inventory are equal to 130% of the next months units of sales.
5. The cost of each unit of inventory is $20.
6. Selling, general, and administrative expenses, of which $2,500 is for depreciation, are
equal to 15% of the current months sales.
7. Actual and projected sales are as follows:
Q.Calculate the budgeted cash disbursements during the month of February.

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