Question
Plack Company budgeted the following information for 2013: May June July Budgeted purchases $104,000 $110,000 $102,000 Cost of goods sold is 40% of sales. Accounts
Plack Company budgeted the following information for 2013:
May June July
Budgeted purchases $104,000 $110,000 $102,000
Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
Plack purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
Selling and administrative expenses are budgeted at $30,000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month.
Income taxes are $38,400 for July and are paid in the month incurred. Compute the amount of budgeted cash disbursements for July. Cash Disbursements
Compute the amount of budgeted Cash disbursements for July.
*Why Do/don't we include the $10,000 from the budeted depreciation ?
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