SO the cash receipts budget depends on when customers pay their A/R. Similarly, the cash payments (disbursements) budget depends on when we, the company, pay our bills. Since most vendors allow 30 days to pay their invoice, these payments will "age" as well.

Please try this exercise in creating a cash payments budget:

The company pays 25% in the month of it's purchases of inventory. The balance is paid in the following month.

All operating expenses are paid in the month they are due.Given this data, what are the expected cash disbursements for December?

October purchases$100,000December purchases$120,000November purchases$50,000January purchases$200,000December Operating Expenses:Salaries$40,000Rent & utilities$1,500Selling$5,000Depreciation$2,000Promotion$500Administration$2,500

(B))Expected purchases for June and July are$76,000and$90,000,respectively. Purchases for May were$56,000.All purchases are paid40%in the month of purchase and60%the following month. At what amount are June payments for purchasesbudgeted? June Payments for purchases budgeted are_____?