Plack Company budgeted the following information for 2013: $\begin{array}{llll}
&\text { May}&\text { June } &\text { July }\
\text { Budgeted purchases } & \$ 104,000 & \$ 110,000 & \$ 102,000
\end{array}$
$\bullet$Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
$\bullet$Plack purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
$\bullet$Selling and administrative expenses are budgeted at $30000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition budgeted depreciation is $10000 per month.
$\bullet$Income taxes are $38400 for July and are paid in the month incurred.
Instructions
Compute the amount of budgeted cash disbursements for July.

Question

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The Answer of Plack Company budgeted the following information for 2013: $\begin{array}{llll}
&\text { May}&\text { June } &\text { July }\
\text { Budgeted purchases } & \$ 104,000 & \$ 110,000 & \$ 102,000
\end{array}$
$\bullet$Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
$\bullet$Plack purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
$\bullet$Selling and administrative expenses are budgeted at $30000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition budgeted depreciation is $10000 per month.
$\bullet$Income taxes are $38400 for July and are paid in the month incurred.
Instructions
Compute the amount of budgeted cash disbursements for July.