Scanlon has no raw material or work in process inventory at


Scanlon Corporation has estimated its activity for April as follows:

Sales: $900,000

Gross profit (based on sales): 30%

Increase in accounts receivable during month: 15,000

Increase in finished goods inventory during month: 25,000

Total selling and administrative costs: 80,000

Depreciation included in selling and administrative costs: 15,000

Scanlon has no raw material or work in process inventory at the beginning or end of April. On the basis of the above, what are estimated cash disbursements for April?

a. $510,000

b. $655,000

c. $565,000

d. $720,000

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Financial Management: Scanlon has no raw material or work in process inventory at
Reference No:- TGS02307542

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