Chain Inc. provided the following information:
$\bullet$
$\bullet$Chain pays 40% of merchandise purchases in the month purchased and 60% in the following month.
$\bullet$General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Chain pays operating expenses in the month incurred.
$\bullet$Chain makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.
Instructions
Calculate budgeted cash disbursements for May.

Question

Chain Inc. provided the following information:
$\bullet$  
$\bullet$Chain pays 40% of merchandise purchases in the month purchased and 60% in the following month.
$\bullet$General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Chain pays operating expenses in the month incurred.
$\bullet$Chain makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.
Instructions
Calculate budgeted cash disbursements for May.

Quizplus · Accepted Answer

The Answer of Chain Inc. provided the following information:
$\bullet$  
$\bullet$Chain pays 40% of merchandise purchases in the month purchased and 60% in the following month.
$\bullet$General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Chain pays operating expenses in the month incurred.
$\bullet$Chain makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.
Instructions
Calculate budgeted cash disbursements for May.

Chain Inc Provided the Following Information ∙\bullet∙ ∙\bullet∙ Chain Pays 40% of Merchandise Purchases in the Month Purchased

Chain Inc Provided the Following Information $\bullet$ $\bullet$ Chain Pays 40% of Merchandise Purchases in the Month Purchased