Sheridan Design provided the following budgeted information for April through July: April May June July Projected sales $118560 $140220 $131100 $150480 Projected merchandise purchases $93480 $104880 $88920 $75240 The cash balance on June 1 is $13680. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $35340 per month of which depreciation is $3420 of this amount. Management pays operating expenses in the month incurred. The company makes loan payments of $4560 per month of which $684 is interest and the remainder is principal. How much are budgeted cash disbursements for June? $134976. $98496. O $117192. $72048.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 20E
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Sheridan Design provided the following budgeted information for April through July:
April
May
June
July
Projected sales
$118560 $140220 $131100 $150480
Projected merchandise purchases $93480 $104880 $88920 $75240
The cash balance on June 1 is $13680. The company pays 40% of merchandise purchases in the month purchased and 60% in the
following month. General operating expenses are budgeted to be $35340 per month of which depreciation is $3420 of this amount.
Management pays operating expenses in the month incurred. The company makes loan payments of $4560 per month of which $684
is interest and the remainder is principal. How much are budgeted cash disbursements for June?
$134976.
$98496.
O $117192.
$72048.
Transcribed Image Text:Sheridan Design provided the following budgeted information for April through July: April May June July Projected sales $118560 $140220 $131100 $150480 Projected merchandise purchases $93480 $104880 $88920 $75240 The cash balance on June 1 is $13680. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $35340 per month of which depreciation is $3420 of this amount. Management pays operating expenses in the month incurred. The company makes loan payments of $4560 per month of which $684 is interest and the remainder is principal. How much are budgeted cash disbursements for June? $134976. $98496. O $117192. $72048.
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