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Maxy Corporation's operational data are below: Sales are budgeted at $260,000 for November, $287,000 for December, and $210,000 for January. All sales are credit sales.
Maxy Corporation's operational data are below:
Sales are budgeted at $260,000 for November, $287,000 for December, and $210,000 for January. All sales are credit sales.
- Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible.
- The cost of goods sold is 65% of sales.
- The Maxy company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
- Other monthly expenses to be paid in cash are $20,300.
- Monthly depreciation is $20,000. - Ignore taxes.
Q.: December cash disbursements for Maxy's merchandise purchases would be:
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