Twitty Company has the following information: Month
(M1)
Problem:
Twitty Company has the following information: Month
April May June July
$154,000 160,000 142,000 136,000
Budgeted Expenses per Month:
Wages Advertising
$28,600 27,200 19,000 20,400 freight-out is20% of sales and other expenses are 8% of sales
Note: All cash expenses are paid when incurred.
The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in June is budgeted to be $6,000.
Required:
1- Prepare a combined schedule of total operating expenses and cash disbursements for expenses for June.
2- The following additional information has been provided for June:
Cash Collections in June ......................................... $130,000 Inventory purchases (all paid in June)................................ $28,000 Dividends paid in June ....................................................... $4,000
Prepare a
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