Hilton Company Hilton Company,a reseller of women's fashions,has budgeted its activity for March.The budget information is presented below:
I. Sales are $550,000. All sales are cash
II. Merchandize inventory on February 28 is $\$ 300,000$
III. Budgeted depreciation for March is $ \$ 35,000 $.
IV. Cashin bank on March 1 is $ \$ 25,000 $.
V. Selling and administrative expenses are budgeted at $ \$ 60,000 $ for March and are paid in cash
VI. The planned merchandise inventory on March 31 is $ \$ 270,000 $.
VII. The invoice cost for merchandise purchases represents $ 75 \% $ of salesprice. All purchass are paid for in cash Refer to Hilton Company.The budgeted cash disbursements for March are:

Question

Quizplus · Accepted Answer

The budgeted cash disbursements for March can be calculated as follows:

Beginning Accounts Payable + Purchases - Ending Accounts Payable = Cash Disbursements

$250,000 + $600,000 - $407,500 = $442,500

Therefore, the best choice is B.

Hilton Company Hilton Company,a Reseller of Women's Fashions,has Budgeted Its $300,000\$ 300,000$300,000

Hilton Company Hilton Company,a Reseller of Women's Fashions,has Budgeted Its $\$ 300,000$