Solved

Kitchen Cabinets Company Is in the Process of Preparing Its

Question 67

Essay

Kitchen Cabinets Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Materials purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 22 percent of sales and are paid during the month of sale. Other operating costs amounting to 24 percent of sales are to be paid in the month following the month of sales. Additionally, a monthly lease payment of $5,000 is paid to Net World for computer services. Sales revenue is forecasted as follows:
 Month  Sales  March $180,000 April $217,000 May $230,000 June $200,000 July $300,000\begin{array} { l c } \underline{\text { Month }} & \underline{\text { Sales }} \\\text { March } & \$ 180,000 \\\text { April } & \$ 217,000 \\\text { May } & \$ 230,000 \\\text { June } & \$ 200,000 \\\text { July } & \$ 300,000\end{array} Calculate the amount of budgeted cash disbursements for the month of June?

Correct Answer:

verifed

Verified

\[\begin{array} { l r }
\text { July ma...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents