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Use the Following Data to Determine the Company's Cash Disbursements

Question 155

Essay

Use the following data to determine the company's cash disbursements for the month of August and September:
 July  August  September Sales $24,000$32,000$36,000 Purchases 14,400$19,200$21,600\begin{array}{lrlr}&\text { July } & \text { August } & \text { September } \\\text {Sales } &\$ 24,000 & \$ 32,000 & \$ 36,000 \\\text { Purchases } &14,400 & \$ 19,200 & \$ 21,600\end{array}



Payments for purchases  One month after purchaseSelling expenses 15 % of sales, paid in the month of sale Administrative expenses  10 % of sales, paid in the month of sale  Rent expense $2,400 per month Equipment depreciation  $ 1,300 per month \begin{array}{ll} \text {Payments for purchases } & \text { One month after purchase}\\ \text {Selling expenses } & \text {15 \% of sales, paid in the month of}\\ & \text { sale } \\ \text {Administrative expenses } & \text { 10 \% of sales, paid in the month of}\\ & \text { sale } \\ \text { Rent expense } & \$ 2,400 \text { per month }\\ \text {Equipment depreciation } & \text { \$ 1,300 per month}\end{array}

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