Blue Spruce, Inc. provided the following information: March April May Projected merchandise purchases $67,000 $77,500 $81,500 • Blue Spruce pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. • General operating expenses are budgeted to be $24,000 per month of which depreciation is $2,300 of this amount. Blue Spruce pays operating expenses in the month incurred. Calculate Blue Spruce’s budgeted cash disbursements for May. Budgeted cash disbursements $enter the budgeted cash disbursements in dollars
Blue Spruce, Inc. provided the following information: March April May Projected merchandise purchases $67,000 $77,500 $81,500 • Blue Spruce pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. • General operating expenses are budgeted to be $24,000 per month of which depreciation is $2,300 of this amount. Blue Spruce pays operating expenses in the month incurred. Calculate Blue Spruce’s budgeted cash disbursements for May. Budgeted cash disbursements $enter the budgeted cash disbursements in dollars
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 20E
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Question
Blue Spruce, Inc. provided the following information:
March
|
April
|
May
|
|||||
---|---|---|---|---|---|---|---|
Projected merchandise purchases
|
$67,000 | $77,500 | $81,500 |
• | Blue Spruce pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. | |
• | General operating expenses are budgeted to be $24,000 per month of which |
Calculate Blue Spruce’s budgeted cash disbursements for May.
Budgeted cash disbursements | $enter the budgeted cash disbursements in dollars |
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