Sable Inc. has budgeted direct materials purchases of $400000 in March and $500000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April the following items were budgeted: $\begin{array}{lr}
\text { Wages expense } & \$ 120,000 \
\text { Purchase of office equipment } & 200,000 \
\text { Selling and administrative expenses } & 126,000 \
\text { Depreciation expense } & 18,000
\end{array}$ Instructions
Compute the amount of budgeted cash disbursements for April.

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The Answer of Sable Inc. has budgeted direct materials purchases of $400000 in March and $500000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April the following items were budgeted: $\begin{array}{lr}
\text { Wages expense } & \$ 120,000 \
\text { Purchase of office equipment } & 200,000 \
\text { Selling and administrative expenses } & 126,000 \
\text { Depreciation expense } & 18,000
\end{array}$ Instructions
Compute the amount of budgeted cash disbursements for April.

Sable Inc Has Budgeted Direct Materials Purchases of $400000 in March