Problem
Sarasota, Inc. provided the following information:
March April May
Projected merchandise purchases $67,000 $76,500 $83,500 0
Sarasota pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month.
General operating expenses are budgeted to be $24,000 per month of which depreciation is $2,000 of this amount. Sarasota pays operating expenses in the month incurred.
• Calculate Sarasota's budgeted cash disbursements for May.