accounting 498534
Aug 29, 2021 | Uncategorized
Exercise 20-11 Merchandising: Budgeted cash disbursements LO P1
| Hector Company reports the following: |
|
July |
August |
September |
| Sales |
$ |
28,000 |
$ |
36,000 |
$ |
40,000 |
| Purchases |
|
17,360 |
|
22,320 |
|
28,000 |
|
|
Payments for purchases are made in the month after purchase. Selling expenses are 16% of sales, administrative expenses are 11% of sales, and both are paid in the month of sale. Rent expense of $1,800 is paid monthly. Depreciation expense is $1,400 per month.
|
|
Prepare a schedule of budgeted cash disbursements for August and September.
|
