How much are the budgeted cash disbursements for


Lowe Ridge has budgeted its activity for December according to the following information:

1. Sales at $500,000, all for cash.

2. Budgeted depreciation for December is $12,500.

3. The cash balance at December 1 was $57,000.

4. Selling and administrative expenses are budgeted at $35,000 for December and are paid for in cash.

5. The planned merchandise inventory on December 31 and December 1 is $25,000.

6. The invoice cost for merchandise purchases represents 60% of the sales price. All purchases are paid in cash.

How much are the budgeted cash disbursements for December?

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Accounting Basics: How much are the budgeted cash disbursements for
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