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Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Experience indicates that the company pays for 35% of its
Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Experience indicates that the company pays for 35% of its purchases in the month of purchase and the remaining 65% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:
Wages expense $170,000
Purchase of office equipment 100,000
Selling and administrative expenses 130,000
Depreciation expense 15,000
Instructions
Compute the amount of budgeted cash disbursements for April. Show your work.
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