Question
Werth's Widgets pays for 30% of its inventory purchases in the month of the purchase and the remainder in the following month . The company's
Werth's Widgets pays for 30% of its inventory purchases in the month of the purchase and the remainder in the following month . The company's inventory purchases totaled $ 65.000 in October , $ 87,000 in November , and $ 52,000 in December . During November , Werth acquired new equipment costing $ 100.000 by signing a note for $ 80,000 and paid the balance in cash . Werth made one payment for $ 5,000 toward the note during December that included $ 600 of interest . Income taxes totaling 30,000 were paid in December General and admin expenses totaled $ 30,000 during October $ 35,000 during November and 40.000 during December of which $ 5,000 per month is for depreciation Werth pays 80% of the general and administrative costs during the month incurred and the balance the following month Cash at the beginning of November was $ 40,000 Prepare a cash disbursements budger for November for Werth's Widgets . Omit the budget heading.
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