Part 1

Goliath Company prepared the following purchases budget:

Month	Budgeted Purchases
June	$34,200
July	$41,000
August	$39,600
September	$45,900
October	$48,700

All purchases are paid for as follows: 60% in the month of purchase, 35% in the following month, and 5% two months after purchase.

What are the cash disbursements in August to account for the June purchases at Goliath Company?

A.

$1,710

B.

$16,065

C.

$11,970

D.

$20,520

Part 2

Distribution Corporation collects 60% of a month's sales in the month of sale, 35% in the month following sale, and 5% in the second month following sale. Budgeted sales for the upcoming four months are:

April budgeted sales		$ 110,000
May budgeted sales	$170,000
June budgeted sales	$300,000
July budgeted sales	$150,000

The amount of cash that will be collected in July is budgeted to be

A.

$ 113,500

B.

$ 90,000

C.

$ 203,500

D.

$ 214,500

Part 3

Goliath Company prepared the following purchases budget:

Month	Budgeted Purchases
June	$35,700
July	$41,200
August	$38,100
September	$45,800
October	$48,000

All purchases are paid for as follows: 60% in the month of purchase, 35% in the following month, and 5% two months after purchase.

What are the total cash disbursements in October to account for the purchase of merchandise at Goliath Company?

A.

$46,735

B.

$28,800

C.

$39,065

D.

$48,000