Burr, Inc. provided the following information:
$\bullet$
$\bullet$Burr estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts.
$\bullet$Burr pays 30% of merchandise purchases in the month purchased and 70% in the following month.
$\bullet$General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Burr pays operating expenses in the month incurred.
$\bullet$Burr makes loan payments of $3,000 per month of which $400 is interest and the remainder is principal.
Instructions
Calculate Burr's budgeted cash disbursements for August.

Question

Burr, Inc. provided the following information:
$\bullet$ 
$\bullet$Burr estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts.
$\bullet$Burr pays 30% of merchandise purchases in the month purchased and 70% in the following month.
$\bullet$General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Burr pays operating expenses in the month incurred.
$\bullet$Burr makes loan payments of $3,000 per month of which $400 is interest and the remainder is principal.
Instructions
Calculate Burr's budgeted cash disbursements for August.

Quizplus · Accepted Answer

The Answer of Burr, Inc. provided the following information:
$\bullet$ 
$\bullet$Burr estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts.
$\bullet$Burr pays 30% of merchandise purchases in the month purchased and 70% in the following month.
$\bullet$General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Burr pays operating expenses in the month incurred.
$\bullet$Burr makes loan payments of $3,000 per month of which $400 is interest and the remainder is principal.
Instructions
Calculate Burr's budgeted cash disbursements for August.

Burr, Inc Provided the Following Information ∙\bullet∙ ∙\bullet∙ Burr Estimates That It Will Collect 40% of Its Sales

Burr, Inc Provided the Following Information $\bullet$ $\bullet$ Burr Estimates That It Will Collect 40% of Its Sales