| The following data have been taken from the budget reports of Brandon company, a merchandising company. |
| Purchases | Sales | |
| January | $190,000 | $130,000 |
| February | $190,000 | $230,000 |
| March | $190,000 | $270,000 |
| April | $170,000 | $330,000 |
| May | $170,000 | $290,000 |
| June | $150,000 | $270,000 |
| Fifty percent of purchases are paid for in cash at the time of purchase, and 25% are paid for in each of the next two months. Purchases for the previous November and December were $180,000 per month. Employee wages are 15% of sales for the month in which the sales occur. Selling and administrative expenses are 25% of the following month’s sales. (July sales are budgeted to be $250,000.) Interest payments of $25,000 are paid quarterly in January and April. Brandon’s cash disbursements for the month of April would be: |
rev: 10_27_2011
| $230,000 | |
| $170,000 | |
| $327,000 | |
| $277,500 |
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