Wildhorse State sells electronic products. The controller is responsible for preparing the master budget and has accumulated theinformation below for the months of January, February, and March.Balances at January 1 are expected to be as follows:Cash$6,160Inventories$346,500Accounts receivable 466,000Accounts payable149,000The budget is to be based on the following assumptions:1.Each month's sales are billed on the last day of the month.2.3.4.Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked atgross.The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and9% by the end of the second month after the date of sale; 6% prove uncollectible.It pays 54% of all materials purchases and the selling, general, and administrative expenses in the month purchased and theremainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units ofsales.5.The cost of each unit of inventory is $20.6.7.Selling, general, and administrative expenses, of which $2,200 is for depreciation, are equal to 15% of the current month'ssales.Actual and projected sales are as follows:MonthSalesUnitsNovember $396,000 13.200December408,000 13,600January399,000 13,300February384,000 12,800March402,000 13,400April411,00013,700(a)Calculate the budgeted cash disbursements during the month of FebruaryTotal cash disbursements for February

Answered: Calculate the budgeted cash…

Business

Accounting

Calculate the budgeted cash disbursements during the month of February Total cash disbursements for February $

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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H1.
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