is a retailer Its accountants are preparing the company's 2nd quarter master budget The company has the following balance sheet as of March 31 TES 230 Inc Balance Sheet March 31 Assets Cash $ 76,000 Accounts receivable 137,000 Inventory 86,100 Plant and equipment, net of depreciation 230,000 Total assets $ 529,100 Liabilities and Stockholders Equity Accounts payable $ 91,000 Common stock 312,000 Retained earnings 126,100 Total liabilities and stockholders equity $ 529,100 Sales for April, May, June, and July will be $410,000, $430,000, $420,000, and $440,000, respectively All sales are on credit Each months credit sales are collected 35 in the month of sale and 65 in the month following the sale All of the accounts receivable at March 31 will be collected in April Each months ending inventory must equal 30 of next months cost of goods sold The cost of goods sold is 70 of sales The company pays for 40 of its merchandise purchases in the month of the purchase and the remaining 60 in the month following the purchase All of the accounts payable at March 31 are related to previous merchandise purchases and will be paid in April Monthly selling and administrative expenses are always $58,000 Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 is spent for expenses that are paid in the month they are incurred The company will not borrow money or pay or declare dividends during the 2nd quarter The company will not issue any common stock or repurchase its own stock during the 2nd quarter How much is the company's expected cash disbursement for merchandise in the month of April

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Posted on Oct 23, 2024

is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31.

TES-230 Inc.
Balance Sheet
March 31
Assets
Cash	$	76,000
Accounts receivable		137,000
Inventory		86,100
Plant and equipment, net of depreciation		230,000
Total assets	$	529,100
Liabilities and Stockholders Equity
Accounts payable	$	91,000
Common stock		312,000
Retained earnings		126,100
Total liabilities and stockholders equity	$	529,100
Sales for April, May, June, and July will be $410,000, $430,000, $420,000, and $440,000, respectively. All sales are on credit. Each months credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. Each months ending inventory must equal 30% of next months cost of goods sold. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at March 31 are related to previous merchandise purchases and will be paid in April. Monthly selling and administrative expenses are always $58,000. Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 is spent for expenses that are paid in the month they are incurred. The company will not borrow money or pay or declare dividends during the 2nd quarter. The company will not issue any common stock or repurchase its own stock during the 2nd quarter. How much is the company's expected cash disbursement for merchandise in the month of April?