BE 164 Plack Company budgeted the following information for 2019: May $104,000 ● June $110,000 July $102,000 Budgeted purchases Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions. Plack purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. Selling and administrative expenses are budgeted at $30,000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month. Income taxes are $38,400 for July and are paid in the month incurred. Instructions Compute the amount of budgeted cash disbursements for July.
BE 164 Plack Company budgeted the following information for 2019: May $104,000 ● June $110,000 July $102,000 Budgeted purchases Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions. Plack purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. Selling and administrative expenses are budgeted at $30,000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month. Income taxes are $38,400 for July and are paid in the month incurred. Instructions Compute the amount of budgeted cash disbursements for July.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:BE 164
Plack Company budgeted the following information for 2019:
May
Budgeted purchases $104,000
●
●
●
June
$110,000
July
$102,000
Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
Plack purchases and pays for merchandise 60% in the month of acquisition and 40% in the
following month.
Selling and administrative expenses are budgeted at $30,000 for May and are expected
to increase 5% per month. They are paid during the month of acquisition. In addition,
budgeted depreciation is $10,000 per month.
Income taxes are $38,400 for July and are paid in the month incurred.
Instructions
Compute the amount of budgeted cash disbursements for July.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education