Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data have been taken from the budget reports of Brandon company, a merchandising company. January February March April May June Purchases Sales


 

The following data have been taken from the budget reports of Brandon company, a merchandising company. January February March April May June Purchases Sales $160,000 $100,000 $160,000 $200,000 $160,000 $240,000 $140,000 $300,000 $140,000 $260,000 $120,000 $240,000 Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen

6th Edition

0077185536, 978-0077185534

More Books

Students also viewed these Accounting questions

Question

$250 is what percent less than $750?

Answered: 1 week ago

Question

How much is $102 after a decrease of 2%?

Answered: 1 week ago

Question

How much is $150 after an increase of 150%?

Answered: 1 week ago