The Boxer Company, a merchandising firm, has budgeted its activity for December according to the following information:
? Sales at $500,000, all for cash.
? Merchandise Inventory on November 30 was $250,000.
? The cash balance at December 1 was $20,000.
? Marketing and administrative expenses are budgeted at $50,000 for December and are paid for in cash.
? Budgeted depreciation for December is $30,000.
? The planned merchandise inventory on December 31 is $260,000.
? The cost of goods sold represents 75% of the sales price.
? All purchases are paid for in cash in the month of purchase.
Required:
a. What are the budgeted cash receipts for December?
b. What are the budgeted cash disbursements for December?

Question

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The Answer of The Boxer Company, a merchandising firm, has budgeted its activity for December according to the following information:
? Sales at $500,000, all for cash.
? Merchandise Inventory on November 30 was $250,000.
? The cash balance at December 1 was $20,000.
? Marketing and administrative expenses are budgeted at $50,000 for December and are paid for in cash.
? Budgeted depreciation for December is $30,000.
? The planned merchandise inventory on December 31 is $260,000.
? The cost of goods sold represents 75% of the sales price.
? All purchases are paid for in cash in the month of purchase.
Required:
a. What are the budgeted cash receipts for December?
b. What are the budgeted cash disbursements for December?

The Boxer Company, a Merchandising Firm, Has Budgeted Its Activity