Question
The following data have been taken from the budget reports of Brandon company, a merchandising company. Purchases Sales January $190,000 $130,000 February $190,000 $230,000 March
The following data have been taken from the budget reports of Brandon company, a merchandising company. |
Purchases | Sales | |
January | $190,000 | $130,000 |
February | $190,000 | $230,000 |
March | $190,000 | $270,000 |
April | $170,000 | $330,000 |
May | $170,000 | $290,000 |
June | $150,000 | $270,000 |
Fifty percent of purchases are paid for in cash at the time of purchase, and 25% are paid for in each of the next two months. Purchases for the previous November and December were $180,000 per month. Employee wages are 15% of sales for the month in which the sales occur. Selling and administrative expenses are 25% of the following month's sales. (July sales are budgeted to be $250,000.) Interest payments of $25,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be: |
$230,000 | |
$170,000 | |
$327,000 | |
$277,500 |
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