Question
Flatt's Inc. budgeted the following information for 2019: Jan Feb March Budgeted purchases: $107,000 $122,000 $124,000 Cost of goods sold is 30% of sales. Merchandise
Flatt's Inc. budgeted the following information for 2019:
Jan Feb March
Budgeted purchases: $107,000 $122,000 $124,000
Cost of goods sold is 30% of sales. Merchandise purchases are paid 45% in the month of the purchase, 25% the following month. Selling and administrative expenses are budgeted at $35,000 for Jan and are expected to increase 10% per month. They are paid during the month when they incur the expense. In addition, budgeted depreciation is $21,000 per month. Income taxes are $44,000 for March and are paid in the month incurred. Compute budgeted cash disbursements for March. (Show Work)
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