Your firm is trying to determine its cash disbursements for the next two months (June and July) .In any month,the firm makes purchases of 60% of that month's sales,which are paid the following month.In addition,the firm incurs the following costs every month and pays for them in the month the expenses are incurred: wages/salaries of $10,000,rent of $4,000,and miscellaneous cash expenses of $1,000.Depreciation amortised on a monthly basis is $2,000.June's sales are expected to be $100,000,and July's sales are expected to be $150,000.Cash disbursements for the month of July are expected to be
A) $105,000.
B) $107,000.
C) $77,000.
D) $75,000.
Correct Answer:
Verified
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