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The Express Company Is Preparing Its Cash Budget for the Month

Question 87

Multiple Choice

The Express Company is preparing its cash budget for the month of June.The following information is available concerning its inventories:
 Inventories at beginning of June $67,500 Estimated purchas es of June 330,000 Estimated cost of goods sold for June 337,500 Estimated payments in June for purchas es in  May 56,250 Estimated payments in June for purchas es prior  to May 15,000 Estimated payments in June for purchases in  June 80%\begin{array} { | l | r | } \hline \text { Inventories at beginning of June } & \$ 67,500 \\\hline \text { Estimated purchas es of June } & 330,000 \\\hline \text { Estimated cost of goods sold for June } & 337,500 \\\hline \begin{array} { l } \text { Estimated payments in June for purchas es in } \\\text { May }\end{array} & 56,250 \\\hline \begin{array} { l } \text { Estimated payments in June for purchas es prior } \\\text { to May }\end{array} & 15,000 \\\hline \begin{array} { l } \text { Estimated payments in June for purchases in } \\\text { June }\end{array} & 80 \% \\\hline\end{array} What are the estimated cash disbursements for inventories in June?


A) $264,000.
B) $320,250.
C) $335,250.
D) $341,250.

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