Monty Company budgeted the following information for 2022: May Budgeted purchases of merchandise $104,500 June $111,500 • Cost of goods sold is 40% of sales. Accounts payable is used only for merchandise inventory acquisitions. • Monty purchases and pays for merchandise 70% in the month of acquisition and 30% in the following month. • Selling and administrative expenses are budgeted at $34,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month. • Income taxes are $39,000 for July and are paid in the month incurred. Compute the amount of budgeted cash disbursements for July. Cash Disbursements $ July $102,500

Monty Company budgeted the following information for 2022: May Budgeted purchases of merchandise $104,500 June $111,500 • Cost of goods sold is 40% of sales. Accounts payable is used only for merchandise inventory acquisitions. • Monty purchases and pays for merchandise 70% in the month of acquisition and 30% in the following month. • Selling and administrative expenses are budgeted at $34,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month. • Income taxes are $39,000 for July and are paid in the month incurred. Compute the amount of budgeted cash disbursements for July. Cash Disbursements $ July $102,500

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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