Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Compute the budgeted cash disbursements during June. Mast Corporation seeks your assistance in developing cash and other budget information for May, June and July. At
Compute the budgeted cash disbursements during June. Mast Corporation seeks your assistance in developing cash and other budget information for May, June and July. At April 30, the company had cash of $11,000, accounts receivable of $893,000, inventories of $130,800, and accounts payable of $42,628. The budget is to be based on the following assumptions. . Each month's sales are billed on the last day of the month. . Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). . The bilings are collected as follows: 70 percent within the discount p the month, and 12 percent by the end of the following month. Three percent is uncollectible. Purchase data are as follows. . Of all purchases of merchandise and selling, general, and administrative expenses, 55 percent is Phe inume of tn ts in eah mnth eding oenty eas 420 percent of the next month's units . The number of units in each month's ending inventory equals 120 percent of the next month's units of sales . The cost of each unit of inventory is $10. . Selling. general, and administrative expenses, of which $4,000 is depreclation, equal 20 percent of the current month's sales . Actual and projected sales follow: Dollars Units $162,000 10,800 211,500 14,100 163,500 10,900 201,000 13,400 195 000 13,000 16,000 13,200 March April May June July August
Compute the budgeted cash disbursements during June.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started