Question
In preparing its cash budget for May, Ben Co. made the following projections: Sales $3,000,000 Gross margin (based on sales) 25% Decrease in inventories $140,000
In preparing its cash budget for May, Ben Co. made the following projections:
| Sales | $3,000,000 |
| Gross margin (based on sales) | 25% |
| Decrease in inventories | $140,000 |
| Increase in accounts payable for inventories | $240,000 |
For May, How much were the estimated cash disbursements for inventories (purchases from suppliers)?
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
