Question: Lowe Ridge has budgeted its activity for Dec according to the following information.
1. Sales at $400,000, all for cash.
2. Budgeted depreciation for December is $10,000.
3. The cas balance at Dec 1 was $10,000.
4. Selling and administrative expenses are budgeted at $40,000 for Dec and are paid for in cash.
5. The planned merchandise inventory at Dec 31 and Dec 1 is $12,000.
6. The invoice cost of merchandise purchases represents75% of the sales price. All purchases are paid in cash. How much are the budgeted cash disbursements for December?