Question
Dori Inc. is preparing a schedule of cash disbursements for the month of July. It expects to make purchases of $238,200 during July, of which
Dori Inc. is preparing a schedule of cash disbursements for the month of July. It expects to make purchases of $238,200 during July, of which 30% will be made for cash. The remaining purchases are on made on credit. Dori Inc. pays for 40% of its credit purchases in the same month of the purchase and the remaining 60% in the month following the purchase. Dori Inc. also provides the following balance sheet:
Dori Inc. | |
Balance Sheet | |
June 30 | |
Assets | |
---|---|
Cash | $ 59,000 |
Accounts receivable | $73,000 |
Inventory | $35,400 |
Buildings and equipment, net of depreciation | $214,000 |
Total assets | $381,400 |
Liabilities and Stockholders Equity | |
Accounts payable | $86,780 |
Common stock | $216,000 |
Retained earnings | $78,620 |
Total liabilities and stockholders equity | $381,400 |
How much cash does Dori Inc. expect to disburse in July?
Round your answer to the nearest whole dollar amount.
If you require a present value factor and wish to use the tables, click here to view Exhibit 7B-1 or Exhibit 7B-2.
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