The following data have been taken from the budget respons of Brandon company, a
ID: 2453245 • Letter: T
Question
The following data have been taken from the budget respons of Brandon company, a merchandising company. Twenty percent of purchases are paid for in cash at the time of purchase, and 40% are paid for in each of the next two months Purchases for the previous November and December were $160,000 per month. Employee wages are 15% of sales for the month in which the sales occur. Selling and administrative expenses are 25% !the following month's sales. (July sales are budgeted to be $230,000.) Interest payments of $21,000 are paid quarterly in January and April Brandon's cash disbursements for the month of April would be: $278000 $301,000 $210000 $150000Explanation / Answer
$301,000 Particulars Nov Dec Jan Feb Mar Apr May Jun July Sales 110,000.00 210,000.00 250,000.00 310,000.00 270,000.00 250,000.00 230,000.00 Purchases 160,000.00 160,000.00 170,000.00 170,000.00 170,000.00 150,000.00 150,000.00 130,000.00 Cash Purchases @20% (a) 32,000.00 32,000.00 34,000.00 34,000.00 34,000.00 30,000.00 30,000.00 26,000.00 Pymt in Next Mnth @40% (b) 64,000.00 68,000.00 68,000.00 68,000.00 60,000.00 60,000.00 Pymt in 2Mnth @40% © 64,000.00 64,000.00 68,000.00 68,000.00 68,000.00 60,000.00 Emp Wages @15% (d) 16,500.00 31,500.00 37,500.00 46,500.00 40,500.00 37,500.00 S & A @ 25% of Next Mnth sales (e) 52,500.00 62,500.00 77,500.00 67,500.00 62,500.00 57,500.00 Intt Payments (f) 21,000.00 21,000.00 Total Cash Disbursements a+b+c+d+e+f 252,000.00 260,000.00 285,000.00 301,000.00 261,000.00 241,000.00
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