Solved

Bavarian Brew's Schedule of Projected Cash Disbursement

Question 2

Multiple Choice

Bavarian Brew's schedule of projected cash disbursement
Bavarian Brew's schedule of projected cash disbursement    The company's purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the remainder in the month after that. The company's wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April. The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April. In addition, the company will pay a $175 dividend in February. -What are the cash disbursements for February? Assume Bavarian Brew had sales of $490 in December. A)  $598.25 B)  $773.25 C)  $548.25 D)  $419.65 The company's purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the remainder in the month after that. The company's wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April. The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April. In addition, the company will pay a $175 dividend in February.
-What are the cash disbursements for February? Assume Bavarian Brew had sales of $490 in December.


A) $598.25
B) $773.25
C) $548.25
D) $419.65

Correct Answer:

verifed

Verified

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