Skip to question KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May (actual) June (budget) July (budget) Sales $55,000 $56,000 $55,500 Cost of sales $32,000 $33,500 $32,000 Gross margin $23,000 $22,500 $23,500 Operating expenses $18,000 $18,000 $18,000 Operating income $5,000 $4,500 $5,500 Sales are collected 70% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale. What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses?
Skip to question KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May (actual) June (budget) July (budget) Sales $55,000 $56,000 $55,500 Cost of sales $32,000 $33,500 $32,000 Gross margin $23,000 $22,500 $23,500 Operating expenses $18,000 $18,000 $18,000 Operating income $5,000 $4,500 $5,500 Sales are collected 70% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale. What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses?
Skip to question KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May (actual) June (budget) July (budget) Sales $55,000 $56,000 $55,500 Cost of sales $32,000 $33,500 $32,000 Gross margin $23,000 $22,500 $23,500 Operating expenses $18,000 $18,000 $18,000 Operating income $5,000 $4,500 $5,500 Sales are collected 70% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale. What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses?
KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given.
May (actual)
June (budget)
July (budget)
Sales
$55,000
$56,000
$55,500
Cost of sales
$32,000
$33,500
$32,000
Gross margin
$23,000
$22,500
$23,500
Operating expenses
$18,000
$18,000
$18,000
Operating income
$5,000
$4,500
$5,500
Sales are collected 70% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale.
What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses?
Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.
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