(Cash disbursements) The following budgeted information about Reeves Co. is available for September 2010:
|
Sales for September |
$2,700,000 |
|
Gross profit on sales |
40% |
|
Decrease in Merchandise Inventory during September |
$ 43,750 |
|
Wages expense for September |
$ 325,500 |
|
Increase in Wages Payable for September |
$ 42,000 |
|
Other cash expenses for September |
$ 245,000 |
|
Decrease in Accounts Payable during September |
$ 35,000 |
Reeves Co. only uses its Accounts Payable for inventory purchases.
a. How much does Reeves Co. expect to pay for inventory in September 2010?
b. What are total budgeted cash disbursements for September 2010?