The following information applies to the questions displayed below Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year The companys balance sheet as of June 30th is shown below Hamby Corporation Balance Sheet June 30 Assets Cash $ 76,000 Accounts receivable 137,000 Inventory 86,100 Plant and equipment, net of depreciation 230,000 Total assets $ 529,100 Liabilities and Stockholders Equity Accounts payable $ 91,000 Common stock 312,000 Retained earnings 126,100 Total liabilities and stockholders equity $ 529,100 The company managers have made the following additional assumptions and estimates Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, respectively All sales are on credit and all credit sales are collected Each months credit sales are collected 35 in the month of sale and 65 in the month following the sale All of the accounts receivable at June 30 will be collected in July Each months ending inventory must equal 30 of the cost of next months sales The cost of goods sold is 70 of sales The company pays for 40 of its merchandise purchases in the month of the purchase and the remaining 60 in the month following the purchase All of the accounts payable at June 30 will be paid in July Monthly selling and administrative expenses are always $58,000 Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 relates to expenses that are paid in the month they are incurred The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30 The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30 How much is the Company's expected cash disbursement for merchandise in the month of July Multiple Choice $174,720 $207,480 $91,000 $116,480 Next Visit question map Question 9 linked to 10 11 and 12of15Total9 10 11 12 of 15 Prev

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The following information applies to the questions displayed below.] Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter

The following information applies to the questions displayed below.]

Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The companys balance sheet as of June 30th is shown below:

Hamby Corporation
Balance Sheet
June 30
Assets
Cash	$	76,000
Accounts receivable		137,000
Inventory		86,100
Plant and equipment, net of depreciation		230,000
Total assets	$	529,100
Liabilities and Stockholders Equity
Accounts payable	$	91,000
Common stock		312,000
Retained earnings		126,100
Total liabilities and stockholders equity	$	529,100

The company managers have made the following additional assumptions and estimates:

Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, respectively.
All sales are on credit and all credit sales are collected. Each months credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.
Each months ending inventory must equal 30% of the cost of next months sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.
Monthly selling and administrative expenses are always $58,000. Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 relates to expenses that are paid in the month they are incurred.
The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

How much is the Company's expected cash disbursement for merchandise in the month of July?

Multiple Choice