Blue Spruce, Inc. provided the following information: March April May Projected merchandise purchases $67,000 $77,500 $81,500 •Blue Spruce pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. •General operating expenses are budgeted to be $24,000 per month of which depreciation is $2,300 of this amount. Blue Spruce pays operating expenses in the month incurred. Calculate Blue Spruce’s budgeted cash disbursements for May.Budgeted cash disbursements $enter the budgeted cash disbursements in dollars

Budgeted cash disbursement means the amount of expenses estimated to be paid in future period. This…

Answered: Blue Spruce, Inc. provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blue Spruce, Inc. provided the following information:

		March		April		May
Projected merchandise purchases		$67,000		$77,500		$81,500

•	Blue Spruce pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month.
•	General operating expenses are budgeted to be $24,000 per month of which depreciation is $2,300 of this amount. Blue Spruce pays operating expenses in the month incurred.

Calculate Blue Spruce’s budgeted cash disbursements for May.

Budgeted cash disbursements

$enter the budgeted cash disbursements in dollars

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