(Cash disbursements) In trying to decide whether it was feasible for the company to acquire treasury stock during May 2000, Wyatt Jones, president of Dallas Leather, Inc., requested information on projected cash disbursements for that month. He received the following information from his new accountant:
|
Sales for May |
$2,000,000 |
|
Gross profit on sales |
40% |
|
Wages expense for May |
$412,500 |
|
Other cash expenses for May |
$235,250 |
|
Decrease in Accounts Payable during May |
$40,000 |
|
Decrease in Merchandise Inventory during May |
$33,750 |
Not understanding how the above information could help him compute cash disbursements, Mr. Jones asked the accountant to show how cash disbursements can be computed from these figures. If all significant data are given, what are projected cash disbursements for May?