Question

Tyler Sheen is the owner of MTE Incorporated. He provided the selected opening balances as at June 1, 2019 and the budgeted information for June and July 2019.

Selected Opening Balances as of June 1, 2019
Cash $116,600
Accounts Receivable 145,000
Inventory 305,000
Long-term Assets 737,000
Accounts Payable 41,100
Stockholder's Equity 564,000

Budgeted Amounts
For the month of June:
Total Revenue $334,000
Total General and Administration Costs 232,000
Total Capital Expenditures 147,000
For the month of July:
Total Revenue 485,200
Total General and Administration Costs 235,000
Total Capital Expenditures 277,000

Do not enter dollar signs or commas in the input boxes.
Round your answer to the nearest dollar

The company’s monthly depreciation represents 10% of general and administration costs. 70% percent of the general and administration costs (excluding depreciation) are paid in the month in which they are incurred, and the rest is recorded in accounts payable to be paid in the next month. Of the $147,000 capital expenditures for June, $87,000 will be paid in July. The remaining amount will be paid in the month in which they are incurred.

a) Calculate the total cash disbursement for the month of June.

General Administration costs from May $Answer
41100

General Administration costs from June $Answer
129920

Capital Expenditure $Answer
60000

Total cash disbursement for June $Answer

b) Calculate the total cash disbursement for the month of July.

General Administration costs From June $Answer

General Administration costs From July $Answer

Capital Expenditure from June $Answer

Capital Expenditure from July $Answer

Total cash disbursement for July $Answer

Answer 1

For the month of June, the total cash disbursement is $693,200. For the month of July, the total cash disbursement is $757,000.

Step-by-step explanation:

To calculate the total cash disbursement for the month of June, we need to consider the general and administration costs, capital expenditures, and their payment schedules. The general and administration costs from May are $41,100, while the costs from June are $232,000.

The capital expenditure for June is $147,000. To determine the total cash disbursement for June, we add the general and administration costs from May and June together, which gives us $273,100. We also add the capital expenditure for June, which gives us $420,100.

Therefore, the total cash disbursement for the month of June is $693,200.

To calculate the total cash disbursement for the month of July, we need to consider the general and administration costs and capital expenditures, as well as their payment schedules. The general and administration costs from June are $232,000, while the costs from July are $235,000. The capital expenditure from June is $147,000, and the capital expenditure from July is $277,000.

To determine the total cash disbursement for July, we add the general and administration costs from June and July together, which gives us $467,000. We also subtract the payment made for capital expenditure in June ($87,000) from the total capital expenditure in June ($147,000) to get the remaining capital expenditure to be paid in July, which is $60,000.

Finally, we add the remaining capital expenditure to the general and administration costs for July, which gives us a total cash disbursement of $757,000 for the month of July.

Answer 2

The total cash disbursement for the month of June is $350,500. The total cash disbursement for the month of July is $750,900.

Step-by-step explanation:

To calculate the total cash disbursement for the month of June, we need to find the general administration costs from May, the general administration costs from June, and the capital expenditure. The general administration costs from May are given as $41,100. The general administration costs from June can be calculated by multiplying the total general and administration costs for June by 70%. This gives us $232,000 * 70% = $162,400. The capital expenditure for June is given as $147,000. Therefore, the total cash disbursement for June is $41,100 + $162,400 + $147,000 = $350,500.

To calculate the total cash disbursement for the month of July, we need to find the general administration costs from June, the general administration costs from July, the capital expenditure from June, and the capital expenditure from July. The general administration costs from June are already calculated as $162,400. The general administration costs from July can be calculated by multiplying the total general and administration costs for July by 70%. This gives us $235,000 * 70% = $164,500. The capital expenditure from June is given as $147,000 and the capital expenditure from July is given as $277,000. Therefore, the total cash disbursement for July is $162,400 + $164,500 + $147,000 + $277,000 = $750,900.