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Blue Spruce, Inc. provided the following information: Projected sales Projected merchandise purchases . July $218,000 $150,000 Blue Spruce estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. • Blue Spruce pays for 20% of merchandise purchases in the month purchased and 80% in the following month • General operating expenses are budgeted to be $25,000 per month, including depreciation of $2,300. Blue Spruce pays operating expenses in the month incurred. Blue Spruce makes loan payments of $3,500 per month of which $500 is interest and the remainder is principal, August $264,000 $170,000 Budgeted Cash Disbursements $ Calculate Blue Spruce's budgeted cash disbursements for August.

Blue Spruce, Inc. provided the following information: Projected sales Projected merchandise purchases . July $218,000 $150,000 Blue Spruce estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. • Blue Spruce pays for 20% of merchandise purchases in the month purchased and 80% in the following month • General operating expenses are budgeted to be $25,000 per month, including depreciation of $2,300. Blue Spruce pays operating expenses in the month incurred. Blue Spruce makes loan payments of $3,500 per month of which $500 is interest and the remainder is principal, August $264,000 $170,000 Budgeted Cash Disbursements $ Calculate Blue Spruce's budgeted cash disbursements for August.

FINANCIAL ACCOUNTING
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 Projected sales Projected merchandise purchases . . . July $218,000 $150,000 August $264,000 $170,000 Blue Spruce estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. Blue Spruce pays for 20% of merchandise purchases in the month purchased and 80% in the following month. General operating expenses are budgeted to be $25,000 per month, including depreciation of $2,300. Blue Spruce pays operating expenses in the month incurred. Blue Spruce makes loan payments of $3,500 per month of which $500 is interest and the remainder is principal, Budgeted Cash Disbursements Calculate Blue Spruce's budgeted cash disbursements for August.
Transcribed Image Text:Blue Spruce, Inc. provided the following information Projected sales Projected merchandise purchases . . . July $218,000 $150,000 August $264,000 $170,000 Blue Spruce estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. Blue Spruce pays for 20% of merchandise purchases in the month purchased and 80% in the following month. General operating expenses are budgeted to be $25,000 per month, including depreciation of $2,300. Blue Spruce pays operating expenses in the month incurred. Blue Spruce makes loan payments of $3,500 per month of which $500 is interest and the remainder is principal, Budgeted Cash Disbursements Calculate Blue Spruce's budgeted cash disbursements for August.
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