Part #2: K Company is planning its cash disbursements for the upcoming months. In June, it anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it anticipates $79,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August, it anticipates $80,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments. Purchases are usually paid 40 percent in the current month and 60 percent in the following month. Payroll is paid 80 percent in the current month and 20 percent in the following month. Loan Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of July only.
Part #2: K Company is planning its cash disbursements for the upcoming months. In June, it anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it anticipates $79,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August, it anticipates $80,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments. Purchases are usually paid 40 percent in the current month and 60 percent in the following month. Payroll is paid 80 percent in the current month and 20 percent in the following month. Loan Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of July only.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Part #2: K Company is planning its cash disbursements for the upcoming months. In June, it
anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it
anticipates $79,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August,
it anticipates $80,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments.
Purchases are usually paid 40 percent in the current month and 60 percent in the following month.
Payroll is paid 80 percent in the current month and 20 percent in the following month. Loan
Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of
July only.
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