88.2k views
0 votes
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:

User Clp
by
7.7k points

1 Answer

6 votes

Answer:

B. $254,000

Step-by-step explanation:

5April Purchases X 40% =$ 56,000

March Purchases X 30% =48,000

February Purchases X 30% = 48,000

April Sales (salaries) X 10% = 30,000

May Sales (S & A Exp) X 20% = 52,000

April Interest Payment = 20,000

TOTAL$254,000

Brandon's cash disbursements for the month of April would be:$254,000

User Stefan Holdermans
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories