Question $5$

$1p$

The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:

Sales at $$550,000,$ all for cash.

Merchandise inventory on November $30$ was $$300,000.$

The cash balance at December $1$ was $$25,000.$

Selling and administrative expenses are budgeted at $$60,000$ for December and are paid in cash.

Budgeted depreciation for December is $$35,000.$

The planned merchandise inventory on December $31$ is $$270,000.$

The cost of goods sold is $75\%$ of the sales price.

All purchases are paid for in cash.

There is no interest expense or income tax expense.

The budgeted cash disbursements for December are:

$$472,500$

$$442,500$

$$477,500$

$$382,500$